Chicago Feds President Says Soft Landing Possible for US Economy, But Risks Remain

Federal Reserve Bank of Chicago President Austan Goolsbee said its possible for the US to avoid a recession even as the US central bank raises interest rates to cool inflation.

"Ive been calling that the golden path and I think its possible, but there are a lot of risks and the path is long and winding," Goolsbee said Monday in an interview with (CNBC).

Fed officials voted to hold their benchmark lending rate steady last week at a 22-year high, and most said they expect to lift it one more time this year.

In projections released after the two-day meeting, policymakers also signaled theyre more optimistic about the prospects for a "soft landing" for the US economy, but made clear they see rates staying higher for longer than previously expected.

Federal Reserve Chair Jerome Powell said policymakers will "proceed carefully" as they near the end of their rate-hiking cycle, but emphasized that the Fed remains committed to bringing inflation back to its 2% target.

Source: Qatar News Agency