Dow Jones plummets 880 points amid latest inflation numbers

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Reuters

A Fed soft landing for jobs means something else has to crack; so far it hasn’t

The healthy finances of U.S. banks, companies and households, trumpeted during the pandemic by Federal Reserve officials as a source of resilience, may be an obstacle to battling inflation as central bankers raise interest rates in an economy able so far to pay the price. In outlining their aggressive turn to tighter monetary policy, Fed officials say they hope to clamp down on the economy without destroying jobs, with higher interest rates slowing things enough that companies scale back the current high number of job vacancies while avoiding layoffs or a hit to household income. But that means the pain of inflation control would have to fall mostly on owners of capital via a slowed housing market, higher corporate bond rates, lower equity values, and a rising dollar to make imports cheaper and induce domestic producers to hold down prices.