The Fed’s historic pace of interest rate hikes to cool down the hot economy and bring the multi-decade high inflation under its 2% target level has continuously raised fears of an economic recession. However, with the latest CPI report settling in lower than expected, analysts believe a downturn would be less severe.
The Conference Board CEO Steve Odland told CNBC that any potential downturn is expected to be mild. “Wages are rising quite rapidly. This could be a much less painful experience with the Fed trying to tame inflation than it has been in the past,” he added.
