{
  "id": 9536264,
  "title": "Fed again hoping for a pain-free landing from current inflation spike",
  "url": "https://urgent.news/2026/09/24/fed-again-hoping-for-a-pain-free-landing-from-current-inflation-spike",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-24T10:24:53.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/fed-again-hoping-for-a-painfree-landing-from-current-inflation-spike-4914903"
  },
  "original_language": "en",
  "account": "The Federal Reserve remains optimistic about navigating the current inflation spike without causing significant economic harm, particularly to the job market. The central bank's success in this endeavor may depend on businesses anticipating lower inflation due to falling prices rather than the underlying causes of price increases, which remain a topic of debate among policymakers. According to Fed Chairman Kevin Warsh and other officials, a soft and slow inflation landing is achievable, requiring minimal impact on unemployment.\n\nIf people believe the Federal Reserve is actively addressing inflation, it can influence their expectations and behavior in price-setting decisions. Conversely, if there is a perception that the Fed is not taking action, this could also impact price-setting behavior. Fed officials propose two potential approaches to reducing inflation: either decreasing demand by curbing consumption or supply, or modifying price expectations.\n\nOne counterargument suggests that without an abrupt end to supply shocks such as energy and tariff issues, certain sectors will need to experience the consequences of rate hikes, whether through reduced consumer spending or decreased business investment. Nonetheless, Fed officials, including Warsh, are focusing on leveraging expectations to achieve their inflation goals. Current labor market conditions are near full employment, with a 4.1% unemployment rate and moderate wage growth, which align with the central bank's 2% inflation target. Inflation levels are elevated at 3.7%, but not at the extreme post-pandemic rates that triggered the most aggressive rate hikes since the 1980s.\n\nInflation expectations are anchored around the 2% target, which the Fed heavily relies on. If tariff and energy shocks subside as anticipated, there may already be some easing of price pressures. The current labor market is not a source of inflation, and there is no immediate need to slow down economic activity to attain the inflation target. The Federal Reserve's latest projections indicate that the unemployment rate will remain unchanged through 2029, even with PCE (Personal Consumption Expenditures Price Index) inflation decreasing and economic growth staying above its long-run potential. This outlook, though unusual, underscores the importance of anchored expectations and avoiding the assumption that rising joblessness is the sole pathway back to a 2% inflation rate.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}