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Larry Summers: The Fed’s next steps on inflation

Fed allowed itself to fall way behind the curve in 2021 and early 2022, calling its credibility into question. Fed has since moved aggressively to contain inflation by raising rates and quantitatively tightening. What should the Fed do next? The choices from here get harder, not easier, as risk of recession and enduring inflation make policymaking more challenging. Hawks who suggest Fed must keep raising rates neglect the fact that inflation is coming down, writes Andrew Keen.

Keen: Overshooting on inflation reduction is not the primary risk, and the Fed is right to emphasize its inflation objective. It is very unlikely that we will have a recession so severe as to drive underlying inflation rate below 2 percent target.