![Around the clock movers](https://loka.nahovitsyn.com/69.jpg)
![signal mountain lodge signal mountain lodge](http://1.bp.blogspot.com/-93Up65q7RqY/U01VgPo-c8I/AAAAAAAAALA/A07ldAdd0ko/s1600/sml+new+logo+3.png)
Reuters Charts BACK TO “CONVENTIONAL” POLICY? The costs of runaway inflation, according to the Fed, would be much higher and would come with even worse risks for the future. The pain of a modest recession would be severe for those who lose their jobs. The language matches expectations in the UK and other parts of Europe that central banks may need to keep raising interest rates even in the face of a downturn, rather than providing aid in the form lower borrowing costs which would stimulate the economy and employment.Īs much as central bankers have tried to avoid a trade-off between inflation and employment, a sacrifice they feel they have wrongly made in recent years of low inflation out of misplaced fears of rising prices, they recognize that they may not have a choice in the current environment. “I don’t think the risk of a lasting or deep recession is very high,” Philadelphia Fed President Patrick Harker said in an interview with CNBC on Thursday. Controlling the growth of price pressures remains their priority. In recent weeks, Fed officials have gone from avoiding the ‘R’ word, saying their hope is to avoid a recession, to downplaying its importance, especially in the context of the worst outbreak.
![signal mountain lodge signal mountain lodge](https://i.pinimg.com/originals/a9/37/85/a93785799d0293cf5ceeaaad1c817aa8.jpg)
![signal mountain lodge signal mountain lodge](http://media-cdn.tripadvisor.com/media/photo-s/02/30/c4/db/cabins.jpg)
The comments from Bostic and other Fed officials mark a subtle but important shift in emphasis in how the central bank talks about what it does, a Powell might well point out when he takes the podium in a mountain lodge outside Jackson, Wyoming at 10 a.m. Translation: don’t expect the Fed to save the economy or the unemployed from a modest downturn. “Some weakening is to be expected” in the economy, he continued, and “it will be really important that we resist the temptation to be too reactionary, and really make sure that we bring inflation well on its way to 2% before we take steps to increase accommodation in our policy stance.” “, Atlanta Fed Chairman Raphael Bostic told the Wall Street Journal this week. “I will really try to be as resolute as possible, once we get to a level that I think is the appropriate level, to really stay there and to analyze and assess in a targeted way how our policies affect the economy.
![Around the clock movers](https://loka.nahovitsyn.com/69.jpg)