Inflation in the United States rose above 9 percent in the summer of 2022, its highest rate in over four decades. The Federal Reserve has aggressively raised interest rates to combat inflation. While the inflation rate is declining, it remains well above the target rate of 2%.
Did the Federal Reserve react too late to rising inflation? Were its subsequent policy moves appropriately restrictive? Will current policy lead to a recession, or can the Fed engineer a soft landing that brings down inflation without causing a recession? EconoFact Chats welcomes back Jeffrey Fuhrer to discuss these issues.
Jeff is a Senior Fellow at the Mossavar-Rahmani Center for Business and Government at Harvard's Kennedy School. He worked for almost four decades in the Federal Reserve System, including serving as Research Director at the Federal Reserve Bank of Boston, and as Special Advisor to that Bank’s President.