What Could Go Wrong for the Federal Reserve in 2023

In some ways, the 2023 economic outlook for the US is locked in. The Federal Reserve’s goal is to push the rate of inflation back down to 2% over the next few years. It will do this by keeping monetary policy tight enough for long enough to restrain economic activity. This will eventually loosen up the labor market sufficiently to push wage inflation down to the 3% to 4% range…

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