There's a risk the Fed fuels an economic slump as a credit crunch will worsen the impact of its war on inflation, KPMG's chief economist says

• The Federal Reserve needs to be extra careful not to fuel an economic slump, according to KPMG's chief economist.
• Diane Swonk warned that a looming credit crunch makes a "hard landing" scenario more likely.
• “The real risk now is that we up the ante, that the Fed overshoots,” she told CNBC.

The Federal Reserve needs to be extra careful not to overdo its war on inflation with the US economy at risk of suffering a credit crunch, according to KPMG's chief economist.