Fed's rate hikes likely to cause a recession, research says
FILE - Traders on the floor at the New York Stock Exchange watch Federal Reserve Chair Jerome Powell's news conference after the Federal Reserve interest rate announcement in New York, Wednesday, Feb. 1, 2023. Over the past year, the Fed has raised its key short-term rate eight times, causing many kinds of consumer and business loans to become more expensive.(AP Photo/Seth Wenig, File)
NEW YORK (AP) — Can the Federal Reserve keep raising interest rates and defeat the nation's worst bout of inflation in 40 years without causing a recession?
Not according to a new research paper that concludes that such an "immaculate disinflation" has never happened before. The paper was produced by a group of leading economists, and two Fed officials addressed its conclusions in their own remarks Friday....
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