Goldman Sachs – Is the Fed behind the curve?

The authors of the article from Goldman Sachs discuss concerns about the US economy, particularly regarding inflation and the labor market. They question whether the Federal Reserve is falling behind in cutting rates and if the risk of recession is imminent. Various experts, including former Fed Presidents and economists, have differing levels of concern about the labor market and the Fed's actions. Some believe that the Fed should have acted sooner to prevent a recession, while others are not as worried. Goldman Sachs strategists warn that the markets could face sharp corrections if a recession occurs, but that risky assets could still perform well if a recession is avoided.