A new survey offers a bit of insight into the way the Fed's actions can affect the psychology of people who help make decisions in corporate America.
A new survey shows business economists are skeptical the Fed can bring inflation down to its target without sinking the economy.The survey offers a bit of insight into the way the Fed's actions can affect the psychology of people who help make decisions in corporate America.The numbers, published on Monday morning, are from the National Association of Business Economists — a group of people who work largely for private-sector companies, rather than academia.
Results show roughly three-quarters of respondents don't think the Fed can bring inflation down to its stated target of 2% without setting off a recession.If private-sector economists are advising executives that a recession is likely around the corner, that could create something of a self-fulfilling prophecy — as executives delay new projects and investment, both of which make a recession more likely to come to pass.
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