Fed predicts 'soft landing' for the economy --- low inflation and no recession

Senior Fed officials believe they are on track to achieve a rare “soft landing” in which inflation is tamed by higher interest rates but a recession is avoided. The Fed has pulled off such a feat only once since World War II.

That would put inflation close to the Fed’s 2% target, a goal finally achieved in 2026, the forecast shows. Yet the latest summary of economic projects shows just two quarter-point cuts next year instead of four, underscoring the Fed’s message it will keep interest rates “higher for longer” to ensure it snuffs out inflation.

Before the Fed decision, Wall Street DJIA investors were betting the first cut in interest rates next year would take place in June.

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Federal Reserve is poised to leave rates unchanged as it tracks progress toward a ‘soft landing’Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than most Americans would like, while growth remains solid and the job market cools.
Source: KTVU - 🏆 465. / 53 Read more »