Chicago Fed Economic Model Sees U.S. Interest Rates High Enough to Tame Inflation While Avoiding Recession

“We estimate that though nearly all of the results on output and inflation have already occurred, the coverage tightening that has already been carried out will exert additional restraint within the quarters forward, amounting to downward strain of about 3 proportion factors on the extent of actual gross home product (GDP) and a couple of.5 proportion factors on the Client Value Index (CPI) degree,” they famous. “The abatement of inflation happens with out a recession, as actual GDP development stays in constructive territory all through the projection.”