As the pandemic ravaged the economy, the Federal Reserve had to navigate a delicate balancing act. State economies, businesses and workers struggled with high unemployment and inflation. In an effort to mitigate these challenges, the Fed repeatedly raised interest rates. Despite these actions leading to nearly 50-year highs in employment and staving off a recession, Fed Chairman Jerome Powell believes the economy still has a long way to go.
According to Raphael Bostic, president and CEO of the Federal Reserve Bank of Atlanta, the economy was strong before the pandemic and is gradually recovering. During a recent interview on “Closer Look,” Bostic discussed inflation, interest rates and the economic progress being made in the Southeast. He also shared his economic forecast for 2024 and admitted that the economy performed better in 2023 than he originally expected.
Despite some progress being made, there are still challenges ahead for the economy. The Fed must continue its efforts to balance unemployment and inflation as it navigates this uncertain future. Only time will tell whether or not it can successfully do so without causing further harm to state economies, businesses and workers.