Fed 'Horribly Offside' on Inflation: JPMorgan's Michele

The transcript discusses the impact of repricing real rates on economic activity, highlighting the Fed's strategy to control inflation through rate hikes. It explores the potential for a recession, debating whether it will be short and shallow or more severe. The discussion also covers the risks associated with excessive liquidity and low funding costs, suggesting that something in the economy may 'pop' due to these conditions.

What are the characteristics of the recession discussed in the text?

What does the speaker suggest will happen as the cost of funding increases?