A new survey shows business economists are skeptical the Fed can bring inflation down to its target without sinking the economy.
Why it matters: 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.
Driving the news: 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.
The impact: 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.