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Vol 20 (2023) - Issue 5
Article preview
The US Economy: The Quest for a Soft Landing
Kathleen Stephansen, Independent Economist, New York, USASynopsis
The US economy exhibits a thriving consumer sector and a manufacturing sector in recession. Inflation has decelerated but not by enough to convince the Federal Reserve Board that the tightening cycle has run its course. Will the Fed achieve a sustainable soft landing for the economy, or overplay its hand and push the economy into recession? The crosscurrents of incoming data underscore the complexity of how the economy responds to a rapid tightening cycle, and the effects of tightening on different sectors are highly uncertain with respect to extent and timing.
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