Economy Defies Expectations, Leaving Fed Puzzled On How To Tame Inflation
-
Inflation is high but the economy is growing strongly, puzzling the Fed on how to slow it down.
-
Consumer spending has remained resilient despite rate hikes, confounding expectations it would pull back.
-
Job market shows some cooling but no signs of large layoffs or rising unemployment yet.
-
Fed is trying to understand why the economy hasn't responded to rate hikes as textbook economics suggests.
-
Unclear if economy will react to steep rate hikes with expected slowdown, so Fed proceeding cautiously for now.