Fed's Fight Against Inflation

This chapter examines the Federal Reserve's recent actions to combat soaring inflation rates in the U.S., notably the largest interest rate increase since 2000. It discusses the Fed's commitment to restoring price stability alongside maintaining employment, while also addressing the complex economic landscape influenced by global events. The chapter highlights the delicate balance the Fed must strike as it navigates potential risks that could lead to a recession amidst tightening monetary policy.