Agree to Disagree: Can the Fed Manage a Soft Landing?
The Fed recently announced aggressive interest rate hikes and is signaling more to come. Its goal? To stabilize the economy amid surging inflation (reaching rates not seen in some 40 years) and lingering supply chain disruptions and shortages. But just what can the Fed actually do to stave off a potential recession? While many are calling on the central bank to use its monetary policy tools to quell consumer demand and help stabilize the economy, others warn that higher interest rates will backfire and end up hurting the nation’s most vulnerable. In this episode, two esteemed economists debate the Fed’s role in the modern economy, the potential for a “soft landing,” and the policy choices that will shape our economy in the months ahead.