Inflation & Prices
US Can Slow Inflation Without Unemployment Spike, Fed Study Says
- Pandemic recovery sees less inflation impact on unemployment
- Preliminary findings boost hopes of soft landing in the US
Job seekers wait in line to enter a job fair in San Francisco, California.
Photographer: Justin Sullivan/Getty ImagesThis article is for subscribers only.
The US and other industrialized countries may be able to bring inflation down without triggering the huge jumps in unemployment that economists may have predicted prior to the pandemic, according to new research from the Federal Reserve Bank of Chicago.
If correct, that might improve the chances for a soft landing of the US economy as the Fed raises interest rates to cool price pressures.