Fed does not need to evaluate ‘last mile’ of inflation differently
Atlanta Fed economist says overly aggressive approach could trigger hard landing in US economy
The “last mile” of high inflation does not pose a unique challenge for the US Federal Reserve, according to new research.
David Rapach, a research economist at the Federal Reserve Bank of Atlanta, believes that viewing the remaining stages of the inflation cycle as exceptionally difficult for the Fed to navigate would be a mistake – and one that could trigger a recession in the US.
The last mile refers to the final 1% or 2% of excess inflation that the Fed will need to suppress to meet its 2%
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