Can the Fed slow inflation without a recession?
Economic growth was negative in the first quarter, but there appears to be less cause for alarm than the headline number suggests, with consumer and business investment spending solid. Rising mortgage rates and prices have begun to hurt home sales, but excess demand remains, and job growth is still strong thanks to record-high labor demand. Although the possibility of inflation persisting at a high level poses a threat, above-trend growth is still expected for the remainder of the year.