Economics
Former Fed Vice Chair Quarles Says U.S. Is Likely to Suffer Recession
- Quarles served as a Fed policy maker until December 2021
- Tightening ought to have begun in September, Quarles says
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The U.S. economy will probably fall into a recession as the Federal Reserve combats multidecade-high inflation, Randal Quarles, the Fed’s former vice chair for supervision, said.
“Given the intensity of inflation, the degree to which unemployment has been driven down -- to bring that back into an equilibrium, it’s unlikely the Fed is going to be able to manage that to a soft landing,” he said on the IntraFi Network’s Banking with Interest podcast. “The effect is likely to be a recession.”