Fed’s Goal to Cut Inflation to 2% Risks Recession
University of California San DiegoWhile U.S. inflation has come down significantly from nearly 9% to 3% and unemployment continues to stay low, it will be challenging for the Federal Reserve to reduce inflation to its target of 2% without significantly raising the unemployment rate and possibly sinking the U.S. into a recession, according to a new working paper from the University of California of San Diego’s Rady School of Management.