Source: Forbes —
Cooling inflation has helped temper concerns of an imminent recession, particularly as the job market continues to show historic strength, but a worsening housing market collapse and vast uncertainty over the course of the Federal Reserve’s interest hikes have many experts, including policy officials, warning that it’s still too early to know just how difficult this economic downturn will end up being.
“It does not feel like a recession now,” Minneapolis Fed President Neel Kashkari, one of the 12 central bankers who vote on changes to Fed policy, said in a public appearance on Thursday, noting that the labor market remains very strong, wages are rising and consumer demand remains resilient.
Though acknowledging the economy’s strength, which comes as inflation begins to show signs of slowing, Kashkari was also cautious, asking, “…can we continue to bring inflation down without triggering a recession?” and then answering, “I don’t know.”
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