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Weighing the odds of a recession
It was exactly one year back when the Fed accepted that inflation is more than ‘transitory’. And we have seen the effects of that shift reverberate through the markets all this year. However, even with indicators pointing towards some signs of cooling in price pressures, it will be premature to take comfort. The Fed especially understands that, having learnt from the 1970s experience when inflation came roaring back as monetary policy was eased prematurely. The focus, however, is now shifting towards recession concerns with several indicators pointing to weakening in demand conditions going into 2023. Let’s ... (full story)