Federal Reserve on cusp of what some thought impossible: Defeating inflation without steep recession

It was the most painful inflation Americans had experienced since 1981, when “The Dukes of Hazzard” and “The Jeffersons” were topping the TV charts. Yet the Federal Reserve now seems on the verge of defeating it — and without the surge in unemployment and the deep recession that many economists had predicted would accompany it. Inflation has been falling more or less steadily since peaking in June of last year at 9.1%. And when the Fed’s preferred inflation gauge for November is reported next week, it’s likely to show that in the past six months, annual inflation actually dipped just below the Fed’s elusive target of 2%, economists at UBS estimate.