Analysts at Deutsche Bank said in a recent note that the Federal Reserve’s fight to crush inflation could send the unemployment rate as high as 6 percent by the end of 2023, equivalent to around 4 million Americans losing their jobs.
After initially downplaying rising inflation as a “transitory,” an embarrassed Fed has moved aggressively to tighten monetary settings and stamp out surging price pressures.
“Given that the [federal] funds rate was essentially at zero just seven months ago, this has been quite a pivot in monetary policy,” said Charles L. Evans, president of the Federal Reserve Bank of Chicago, in a speech at the end of September….