Can the Fed pull off an “immaculate disinflation”?
Past experience suggests soft landings are rare
FIGHTING INFLATION gets harder the longer it is put off—and the Federal Reserve has waited quite a while. For most of 2021 the central bank said that it had the tools to slow price rises, but saw no need to put them to use. Now investors are coming to terms with the fact that the Fed will have to deploy them at scale. Since March 1st the three-year Treasury yield has risen by more than a percentage point, the biggest absolute change since yields collapsed in January 2008 during the global financial crisis.
This article appeared in the Finance & economics section of the print edition under the headline “Late to disinflate”
Finance & economics April 2nd 2022
- America’s gas frackers limber up to save Europe
- What can Russia do to sell its unwanted oil?
- India grapples with the new realities of the global oil market
- Can the Fed pull off an “immaculate disinflation”?
- Under unprecedented sanctions, how is the Russian economy faring?
- Surging food prices take a toll on poor economies
- The White House wants to close a tax loophole used by the ultra-rich
- Will dollar dominance give way to a multipolar system of currencies?
From the April 2nd 2022 edition
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Nobody is to blame. Everyone suffers
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Canada and Mexico look likely to suffer