Perhaps no question about the world’s largest economy is as divisive as whether it is poised to tip into a recession following the Federal Reserve’s historic battle to tame the worst inflation problem in decades.
Since March 2022, the US central bank has rapidly lifted its benchmark policy rate above 5 per cent to the highest level in 22 years. Much to policymakers’ surprise, the economy has largely digested higher borrowing costs with relative ease, maintaining a resilience that only now is beginning to show more notable, broader signs of strain.
In recognition of this, the Fed recently extended a pause in its monetary tightening campaign, opting this month against another rate rise for its second meeting in a row.
While officials have stopped short of calling an end to increases altogether, chair Jay Powell has given little indication that there is an urgent need to restrain…
