5 million jobs could be lost in the Fed’s war against inflation, analysis says

Published: Aug. 30, 2022 at 11:11 AM EDT
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(CNN) - The battle against inflation could strike a major blow to the job market.

According to analysis from RSM on Monday, if the Federal Reserve revises its inflation target to 3%, the economy would still need to slow down, resulting in a loss of about 1.7 million jobs.

That would cause the national unemployment rate to rise from 3.5% to 4.6%, and that, researchers said, is the best-case scenario.

If the Fed focuses on getting inflation to drop back to 2%, up to 5.3 million jobs could vanish.

Last week, Fed Chairman Jerome Powell warned that not getting a tight grip on inflation could result in major financial problems in the future.