Navigating the Fed's Inflationary Challenges: A Recession Averted?

The Federal Reserve's aggressive campaign to rein in inflation and slow down the US economy may have successfully avoided a recession, despite initial predictions. The Fed raised interest rates 11 times in 20 months and sold off trillions of dollars of bonds, which caused lending rates to surge and negatively impacted the housing market. However, the job market remained robust, aided by changes from the pandemic, and consumer spending remained strong. The Fed's efforts, combined with some luck and favorable factors, have helped keep the economy afloat, although challenges in affordability persist.