A Higher Chance Of Soft Economic Landing

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A Higher Chance Of Soft Economic Landing

White House - A Higher Chance Of Soft Economic Landing

An economic adviser to the US President recently stated how there is a higher chance that the US economy will likely get a soft landing instead of a hard one. In addition, they also added that legal immigration has allowed the labor market to remain strong & competitive.

As for inflation, the head of the National Economic Council added that several indicators now point to lower inflation. They also said that inflation will continue to lower over the next quarters while the economy will continue to get stronger.

Inflation Continues To Go Down

A recent survey revealed that only 33% of US adults believe in the economic approach adopted by Biden. On the contrary, up to 45% believe that Trump's economic plan is far better. So, on the surface, it is clear that the US population is not happy with the country's current economic direction.

However, the economic officials working for the US government said that they are doing everything in their power to lower the borrowing costs.

All of this raises the question of what a soft landing is. It is a process in which the economy is slowed down enough to allow inflation to cool down. However, the key thing is to ensure that the economic slowdown doesn't lead to a full-blown recession.

To increase the prospects of a soft landing, the Fed chief also hinted that the inflation is falling at a much faster speed. As a result, the central bank will likely lower the borrowing costs. These comments allowed the US stocks to rally upwards along with the S&P 500, which is already up by 23% YTD.

As for when the US population will start to see positive signs in the economy, US officials said that it will likely take some time. However, they added that the financial markets of the USA can be viewed to understand that the economy is indeed getting better.

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