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- Is the US in for a soft landing?
Is the US in for a soft landing?
Jerome Powell aims to have a soft landing for the US economy as interest rates continue to rise. Janet Yellen sees Powell needing some luck to make a soft landing happen!📉
A classic gif that is relevant to the economy is always a fantastic way to kick things off!
Soft landing
If you have been in finance for awhile, you’ve most likely heard the term “soft landing”. Can the Fed put the US economy in a soft landing? Possibly!
A soft landing, in economics, is a cyclical slowdown in economic growth that avoids recession. A soft landing is the goal of a central bank when it seeks to raise interest rates just enough to stop an economy from overheating and experiencing high inflation, without causing a severe downturn. Soft landing may also refer to a gradual, relatively painless slowdown in a particular industry or economic sector. -Investopedia
Rates have been on a dramatic rise since the beginning of 2022. After coming out of a trough of low rates, the Fed has been on an aggressive path to kill inflation that has wreaked havoc on the US economy. We have touched on the transitory theme the Fed was pushing back in 2021. Nothing about the parabolic rise in prices was transitory.
