

A Path of Prudent Policy
The Fed’s mandate of full employment and moderate inflation ensures conflict at turning points. The challenge for the Fed is finding the balance to ensure a “soft landing” of the economy. The prolonged elevation of interest rates will ultimately lead to a slower economy and lower employment. The trouble arises with housing:  lower interest rates in response to the Pandemic fed housing market prices. The Fed faces the same risk: lower interest rates may lift housing and limit 



