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

“We estimate that though the vast majority of the consequences 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 stress of about 3 share factors on the extent of actual gross home product (GDP) and a pair of.5 share factors on the Client Value Index (CPI) stage,” they famous. “The abatement of inflation happens with no recession, as actual GDP development stays in constructive territory all through the projection.”