Federal Reserve to begin risky pursuit of a ‘soft landing’

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — The Federal Reserve on Wednesday will launch one of the most difficult tasks a central bank can attempt: Raise borrowing costs enough to slow growth and tame high inflation, but not so much as to topple the economy into recession. With a war raging in Europe and price increases at a four-decade high, Fed Chair Jerome Powell will seek to engineer a “soft landing”: A gradual slowdown in economic activity that helps curb surging price hikes, while keeping the job market and economy expanding. Yet many economists worry that with the price of oil and other commodities spiking, the additional burden of higher interest rates could choke off growth entirely.