Fed Restraint Will Likely Keep US Recession Mild, Blinder Says
- Ex-Fed vice chair out with new book on recent economic history
- Blinder says Powell Fed is more dovish than some in the past
Alan Blinder
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
The US is probably headed for a recession but it’s likely to be a mild one, in part because the Federal Reserve will be wary of raising interest rates too far, the US central bank’s former Vice Chair Alan Blinder said.
Blinder, who’s out with a new book entitled “A Monetary and Fiscal History of the United States, 1961-2021,” said the current Federal Open Market Committee is more dovish than some in the past. He expects Chair Jerome Powell and his colleagues to raise short-term interest rates to 4.5%, then stop to see if sky-high inflation is coming down.