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Oct 11, 2023 · A Soft Landing for the Economy: What It Means and What Data to Look At. One of the definitions of “soft landing” in the Britannica dictionary is “a landing in which an airplane, a spacecraft, etc., touches the ground in a controlled and gradual way that does not damage it.”. It’s easy to picture a soft landing for something like a ...
- What Is A Soft Landing?
- What Does The Term 'Soft Landing' Refer to?
- What Makes A Soft Landing Difficult?
- Will The Fed Achieve A Soft Landing This Time around?
The term “soft landing” refers to an effort on the part of the Fed to slow the economy and bring down inflation, while preventing the U.S. from entering a recession. The Fed has imposed a series of interest rate hikesin recent months as it tries to slash price increases by cooling the economy and choking off demand. The approach, however, risks tip...
When used figuratively, "soft landing" typically refers to the smooth landing of a plane. "Most flights are soft landings," Alan Binder, a professor of economics and public affairs at Princeton University who studies monetary policy, told ABC News. "Occasionally you get a hard one when the pilot doesn’t quite get it right and it’s 'oh, I felt that ...
Central banks struggle to achieve a soft landing because it requires the delicate navigation of economic conditions, even as central banks lack precise tools and face some factors outside of their purview, economists told ABC News. The primary tool deployed by the Federal Reserve in its fight against inflation is the interest rate hike, which incre...
Economists differ on whether the central bank will achieve a soft landing as it dials back the current bout of inflation. Morgan Stanley recently forecastedthat the U.S. would narrowly avert a recession next year, allowing for a soft landing. JPMorgan Chase CEO Jamie Dimon, however, said last month that a soft landing is unlikely. Gagnon, of the Pe...
- Max Zahn
Oct 17, 2023 · A soft landing is what happens when an economy comes out of a strong growth cycle without entering a recession. This is how the financial website Investopedia defines a soft landing: “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 ...
Jul 24, 2023 · Darrell Spence, economist at the Capital Group, adds, "It is possible that inflation could fall meaningfully in a soft landing, but if a soft landing does not weaken the labor market, labor costs ...
May 26, 2024 · A soft landing is a cyclical slowdown in economic growth that ends without a period of outright recession. A soft landing is the goal of a central bank when it seeks to raise interest rates just ...
Jul 19, 2024 · If rates keep coming down, it’s possible the economy will experience a soft landing, Desjardins suggested. It forecast the Bank of Canada will cut rates three more times this year, by 25 basis points each time, including on July 24. “This forecast reflects the reduced appetite for hiring we’ve witnessed recently, consistent with a ...
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Dec 14, 2023 · A soft landing is "the equivalent of 'Goldilocks' porridge' for central bankers: following a tightening, the economy is just right ... A recession is still possible, of course. Powell stressed in ...