Federal Reserve System – Page 87

We Are Not Powerless Against a Recession

Rushing in to confront a crisis is always better than letting it simply unfold.

The trench seems to have recovered its anchor, or something.

Recessions since World War II have lasted just over 10 months each, on average. The last one, which began in 2020, lasted just two months.

Central banks had a longstanding playbook for how inflation worked. In the postpandemic era, all bets are off.

The Fed mustn’t get bullied into excessive harshness.