Cooling an economy without tipping it into recession
Rates rise enough to slow inflation while growth merely decelerates instead of contracting. Too little tightening leaves prices high and too much pushes unemployment up, so the target is narrow. It has been attempted many times and achieved on few of them.
Lifting the policy rate to 5% while unemployment stays near 4% is described as close to this.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.