America has officially defeated inflation without experiencing a recession—yet.
by Rogé Karma
The Atlantic
The Federal Reserve has declared victory in the war on inflation. At its meeting today, the central bank announced that, after setting higher interest rates for two years in an effort to tame prices, it is finally beginning to bring them back down.
The Fed lowered interest rates by 0.50 percent (or 50 basis points), and has suggested that future cuts will be similarly sized. That’s more aggressive than some observers expected, but even at that pace, the super-low rates of pre-pandemic America are still years away. The immediate financial effects will therefore be modest. More important, in all likelihood, is the message that the announcement sends: Inflation is no longer a major concern, and the Fed is now focused on keeping the economy, particularly employment, running strong.