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 results on output and inflation have already occurred, the coverage tightening that has already been applied will exert additional restraint within the quarters forward, amounting to downward strain of about 3 share factors on the extent of actual gross home product (GDP) and a couple of.5 share factors on the Client Worth 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.”