The Intelligence: Fed reckoning
The Intelligence from The Economist
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Navigating Economic Resilience
This chapter explores the unexpected strength of the American economy amid aggressive interest rate hikes by the Federal Reserve. It examines factors such as excess household savings, the U.S. position as an energy exporter, and fiscal policies that support growth. The discussion highlights the Fed's careful balancing act between rate cuts, inflation management, and avoiding recession while grappling with the lingering effects of the pandemic on economic behavior.
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