Fed Sees Path to Taming Inflation, But Recession Risks Loom as Pressures Persist

Fed officials see a path to lower inflation without high unemployment, but risks remain that could push the economy into recession.

Strong September jobs report and rising yields on Treasuries show some forces may keep inflation high, forcing the Fed to raise rates more than expected.

War between Israel and Palestinians brings energy supply uncertainty that could delay progress on inflation.

September CPI data out Thursday will show if inflation continued to slow or has stalled.

Economist Christina Romer thinks more Fed action may be needed for inflation to fall to 2% target, given pressures in the labor market.