Former top Fed staffer Claudia Sahm now ‘cautiously optimistic’ U.S. will avoid recession

With the Federal Reserve rapidly raising interest rates, most economists believe a slowdown is inevitable and many think a recession is unavoidable. While pessimism is on the march higher, macroeconomist Claudia Sahm is leaning in the other direction and now expects a soft landing in 2023.

Federal Reserve chair Jerome Powell signaled recently that the central bank would slow the pace of its interest rate hikes at its mid-December policy meeting, and said he also saw a path to a soft landing. She noted that markets had to react to contradictory public remarks from four different Fed officials when the blackout period lifted after the November policy meeting. While Sahm said she didn’t want to tell anyone not to speak, and stressed that she values “an extremely robust debate around the FOMC [Federal Open Market Committee] table,” the public chatter has been “disruptive to markets at a time where markets needed no more disruption.

Related: Sinema ditches Democrats, but analysts say it’s no Senate earthquake, just a re-election gambit — Claudia Sahm on providing recession relief while minimizing inflation impacts Sahm offered a blueprint for getting income support to families if there is a recession while inflation remains high. Issuing smaller, repeated payments — compared, for example, to the $1,400 checks in the 2021 American Rescue Plan — would be less inflationary because it would emphasize relief while de-emphasizing stimulus, Sahm says.

False. The federalreserve must reverse ineffective rate increases that have no impact on current inflation driven solely by unchecked opportunistic corporate greed. They merely punish the middle class and drive the US into an unnecessary and completely avoidable recession2023.

I'm stupid, but why does raising rates, making money cost more, help inflation? In sounds counterintuitive. Sounds like it would make everything cost more, causing people to buy less, causing companies to not make as much money, causing the snowball to grow bigger. I say stop now

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