Inflation or Recession? The Fed Faces a Choice.

Source: Ludwig von Mises Institute
by Siddharth Gundapaneni

“With the quantitative easing policy maintained throughout the covid-19-induced recession finally ending, the federal funds rate is expected to rise to 0.9 percent in 2022, 1.6 percent in 2023, 2.1 percent in 2024, and 2.5 percent in the undetermined long run. Mortgage-backed security and bond purchases will be reduced by $10 billion and $20 billion a month, respectively, in order to expedite the conclusion of the program by March 2022, rather than June. While this course of action is likely to mitigate the soaring inflation, it may lead to a myriad of detrimental effects to other facets of the economy.” (01/03/22)

https://mises.org/wire/inflation-or-recession-fed-faces-choice