The Fed's Clock is Ticking on A Soft Landing

The Federal Reserve’s aggressive inflation-taming strategies, emphasizing swift and steep interest rate hikes, are questionable in achieving a “soft landing” without causing a recession or massive job losses. Timely rate reduction, a crucial part of the strategy, is even more challenging. The central bank’s inability to prevent previous recessions, despite decreasing borrowing costs 3 to 13 months before downturns, showcases the difficulty in implementing effective monetary policy. With high inflation now a grave concern, the risk of doing too little might prompt yet another rate hike, despite investors believing the Fed may have finished.