Where we’ve been
The Fed said inflation was transitory then admitted inflation was serious. Since then, they’ve been saying they will engineer a soft landing. Well guess what. Now they’re moving on from that dream scenario as well. This time they’re calling for a recession.
Where we’re headed
Will causing a recession truly end inflation? I don’t think so given that supply is still strongly constrained and it will take years to set up new manufacturing for essentials such as fertilizer.
Maybe then the Fed will have to update their predictions again. But what comes after recession?