Regarding inflation, Jerome Powell, chair of the Federal Reserve Board, states, “For starters, we need to raise interest rates to a level that is sufficiently restrictive to return inflation to 2 percent.” Many fear raising rates could lead to a recession, but according to Powell, this may be necessary. Powell states, “high inflation is imposing significant hardship, straining budgets and shrinking what paychecks will buy. This is especially painful for those least able to meet the higher costs of essentials like food, housing, and transportation.” So perhaps the advice here is to prepare for a recession.
Related: How to Outsmart Inflation