It seems the historic inflation currently plaguing the US can’t be tamed without at least some people losing their gainful employment, at least according to new projections by the Federal Reserve.
After seeing the unemployment rate hit lows not seen since hippies first gathered at Woodstock and Neil Armstrong walked on the moon, the Fed is now projecting that those numbers will have to rise in order to tame America’s historically high inflation rate.
“The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy,” Federal Reserve Chair Jerome Powell said at a news conference.
The latest forecasts show the current 3.6% unemployment rate is expected to rise as high as 4.5% by year’s end.
“There has been an expectation that it will go away quickly and painlessly—and I don’t think that’s at all guaranteed,” Powell said when speaking to the Economic Club of Washington, D.C. last month. “The base case for me is that it will take some time, and we’ll have to do more rate increases, and then we’ll have to look around and see whether we’ve done enough.”
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