Federal Reserve Chair Jerome Powell vowed last month that a “soft landing” without a recession or high unemployment was in the works. He cited three historical tightening cycles, 1965, 1984 and 1994, when soft landings occurred.
With the glaring exception of inflation, the US economy is doing well. The job market is tight, incomes are rising and household balance sheets are strong. Corporate inventories are low while margins are near record levels. But inflation is at a 40-year high, nearly four times the Fed’s 2% target. The Fed has dropped its “temporary inflation” rhetoric and turned hawkish. What conditions need to be in place to ensure a soft landing as the Fed tackles inflation?
https://www.wsj.com/articles/powell-soft-landing-economy-jerome-inflation-labor-market-spending-fed-rate-hikes-price-increase-rise-federal-reserve-11649613267 The altimeter for Powell’s soft landing