The Fed must end rate hikes quickly to avoid a recession as inflation is cooling and the banking system remains fragile, Moody's Analytics chief economist says

• The Fed must pause its interest-rate increases quickly to avoid a US recession, Moody's chief economist said. 
• Falling inflation, a softer job market, and a weakened banking system all point to a Fed policy pivot, he said. 
• "The risk of inflation remaining too high appears meaningfully lower than the risk of a recession," Zandi said. 

The Federal Reserve must halt its interest-rate increases quickly for the US economy to dodge a recession, according to Moody's Analytics chief economist Mark Zandi. 

With inflation falling, the labor market easing, and the banking system remaining fragile, it's an opportune time for the central bank to step back from its aggressive monetary policy, Zandi said.