The U.S. economy that has withstood aggressive interest rate hikes, an oil shock from the war in Ukraine, a labor shortage and stubborn inflation is still facing an uncertain future coming out of the coronavirus pandemic.
A strong labor market and signs of slowing inflation have kept the U.S. from falling into a recession despite the Federal Reserve increasing its interest rates at a historically fast pace over the last year to cool the economy.
The Fed is trying to navigate a tight line of cooling inflation without tipping to economy into recession and achieving a soft landing. So far, the economy has been able to weather the rapid rate hikes and inflation is down from record highs seen last summer, though is still triple the central bank’s goal of 2%.
Wage gains have slowed over the last several months and unemployment — while still low compared to historical standards — has inched up as more people enter the labor market. Officials at the Fed have said they want to see cooling in the labor market before they are ready to declare inflation to be in definite decline.... Read More: FOX45