Federal Reserve System – Page 101

The US Economy Is Booming. Why Are Economists Worrying About a Recession?

There is little sign that a recession is imminent. But sky-high demand and supply shortages are testing the economy’s limits.

The U.S. economy added 431,000 jobs and the unemployment rate fell to 3.6 percent. Wages showed sharp gains, but that has been blunted by inflation.

Federal Reserve officials had said that the pace of pay gains would not be consistent with stable inflation if sustained.

Prices climbed at the fastest pace in four decades over the past year. While economists expect a slowdown, it has yet to materialize.

The former Treasury secretary discusses inflation, a possible recession and how the Russia-Ukraine war might exacerbate both.