Fed Can’t Celebrate Yet as Investors Expect Rates, Inflation to Remain Elevated
- Inflation emergency has eased and soft landing looks feasible
- But higher-for-longer rates weigh on stocks and bonds
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If they’d been offered today’s economy a year ago – with inflation downgraded from emergency to mere headache, still-low unemployment, and growth that’s slowed without stalling – the world’s top central bankers would’ve taken it like a shot.
That doesn’t mean anyone at Jackson Hole, where Federal Reserve chief Jerome Powell and his peers meet this week, is likely to declare mission accomplished.