While the Fed’s inflation fight could throw the economy into reverse, a mild slowdown now might help avoid a deeper downturn later.
Inflation like this can’t last forever. How it will end is now the more salient question. Often it takes a recession to break inflation. Economist Lawrence Summers observed that this has been the case every other time inflation was this high and the labor market was this tight.
Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
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