How does a slowing economy help to tame inflation?

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<p style=““ class=“text-align-justify“>The recipe for what is needed to bring things under control in the US, without incurring a recession that is:</p><p style=““ class=“text-align-justify“>The question now is whether we will see a soft landing or hard landing when it comes to how much the economy is going to slow down as lawmakers and policymakers try to bring inflation under control. Ideally, they’d like the former but there are many moving parts to determining that – not to mention factors outside their control such as China’s situation.</p><p style=““ class=“text-align-justify“>In some sense, central banks are in the driver’s seat as their management of tighter policy is akin to shifting through the gears in determining the speed in which we are going to be dealing with said economic challenges. Goldman Sachs‘ take is that they see the Fed hiking by 75 bps this week followed by two more 50 bps rate hikes in November and December:</p>

This article was written by Justin Low at forexlive.com.

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