Economy

Instead of the the current 3.4%

The target is 2%, so another hike or two may be coming.

Since congress can’t/won’t act to strengthen the economy by raising taxes on the rich, the only tool left is rates hikes by the fed.

Historically, prior to the GFC of 2008, Fed rates averaged 5-7%; currently, the Fed funds rate is 5.5%.

While I think Powell waited too long to begin hikes (he should have started a year earlier than he did), which necessitated larger, more rapid hikes, we are now at a point where inflation is cooling, unemployment is at record lows, even with some significant tech layoffs, and wages are starting to catch up with inflation.

The Fed isn’t going to trigger a recession; if anything, Powell has helped engineer a soft landing.