US | Disinflation without a deep recession: the big challenge of the Fed
Since the decade of the 1970s a strong surge in US inflation had not been seen. Even though there are some similarities between those years and nowadays like the higher inflation of food and energy, the Fed back then was not truly independent and used to favor employment expansion at the expense of inflation.
They will peak once the Fed is done tightening. Slowing demand to bring down inflation without significant pain is “not getting any easier”, but markets (still?) price in a soft landing.
In the current global socio-economic context, and especially after the COVID-19 crisis, digitization and sustainability have become key elements of economic and social transformation, being particularly relevant to understand and analyze how both interact.