11 September 2023
The US faces a challenging battle with inflation, and there are concerns it won’t ease smoothly. Rising oil and food prices, along with unpredictable core inflation, could disrupt the decline. The Federal Reserve must decide whether to tolerate above-target inflation or risk a recession and financial instability. This complicated situation, combined with uncertainty about policy rates, Fed independence, and the evolving economic landscape, makes achieving the 2% inflation target a daunting task.