Record inflation of over 9%, the highest in decades, has caused the Fed to ramp up interest rates to subdue this inflation monster. Of course, a tight monetary policy comes with substantial risks. The primary risk is whether the Fed can reduce inflation to its long-established goal of 2.0% without throwing the economy into a recession, the so-called soft landing. If the Fed does not achieve a soft landing, it is highly likely we will face the prospect of an economic downturn or recession within the next 1-3 years.