Powell’s Fed Bets on Running a Hot Economy Without Overheating
Bloomberg News on Apr 25, 2018
Fed officials are “taking a risk, or rather it has been taken for them because of badly timed fiscal stimulus,” said former Fed Governor Laurence Meyer, who runs a policy research firm in Washington. “They can’t prevent an overshoot, so the question is can they contain it without causing a recession?”
Such an outcome would be “an immaculate soft landing,” he says, where they tighten just enough to curb inflation but without causing severe damage to growth and employment.