-
The Fed's high-growth conundrum
Growth is running hot this summer. And that creates a quandary for the Federal Reserve. Why it matters: The Fed has hitched its wagon to the theory that a period of slow growth will be needed to bring down inflation. Yet growth has, if anything, accelerated in recent months even as inflation has slowed. That creates a dilemma of whether the central bank should believe its own economic models and keep raising rates to slow growth or accept the progress on inflation as a sign it's done enough. State of play: As recently as June, the median Fed official was projecting 1% GDP growth for 2023, comfortably below the 1.8% ... (full story)