Central Banks

The Fed Is Playing a Waiting Game to Try to Avoid a Recession

  • By next spring, signs of success or failure should be clearer
  • Central bank not looking for quick return to price stability
WATCH: The two top US inflation metrics are moving in opposite directions ahead of the next Fed meeting. Kathleen Hays reports.Source: Bloomberg
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An increasing number of economists — including the Federal Reserve’s own staff — are predicting the US will escape a recession, though it’ll be well into 2024 before anyone can be sure of it.

Fed Chair Jerome Powell says he expects the central bank to navigate a path where the US economy expands with inflation rates falling back to the 2% target, though the task will be challenging.