Fed May Need to Trigger Recession to Hit 2% Inflation Target, Risking Prolonged Economic Pain

The Fed may have to intentionally cause a recession if it wants to reach its 2% inflation target, according to BMO strategist Ian Lyngen.

Lyngen believes the Fed's current monetary policy may not be restrictive enough to reduce inflation.

Markets have given up hopes for a Fed rate cut in June following the recent hotter-than-expected CPI print.

Frances Donald warns recession risks are rising as the Fed loses data support for near-term cuts.

Some suggest the Fed should adjust its inflation target to 3% to ease risks, but rates may stay higher for years if 2% remains the goal.