Fed Economist Says Final Leg of Inflation Fight Will Be Easier Than Expected.

A new research paper from the Federal Reserve Bank of Atlanta argues that the final phase of the US inflation fight will not be more difficult than previous phases. The paper suggests that the Federal Reserve does not need to approach the final phase differently from the rest. While Fed officials expect three rate cuts in 2024 as inflation falls, they have pushed back against expectations of immediate interest rate cuts. The Atlanta Fed economist warns that excessive concern over the final phase could lead to a policy error and increase the risk of a recession and unemployment. [Extracted from the article]