December 2021 Credit Market Update:
The Fed’s Balancing Act
The Federal Reserve’s goal is to allow enough inflation so that the economy can recover and grow. The challenge is that the economy may overheat, causing continued spiking inflation. On the other side, if the Fed acts too aggressively on interest rates, and too soon, it can cut off the recovery and slow growth. The process for raising rates involves the two main levers the Fed uses to control monetary policy.
