A ‘soft landing’ is still on the table, economists say
Recession fears led to a sharp stock-market selloff in recent days, with the S&P 500 index posting a 3% loss Monday, its worst in almost two years.
Weaker-than-expected job data on Friday fueled concerns that the U.S. economy is on shaky footing, and that the Federal Reserve may have erred in its goal of achieving a so-called “soft landing.”
A soft landing would mean the Fed charted a path with its interest-rate policy that tamed inflation without triggering an economic downturn.
Federal data on Friday showed a sharp jump in the U.S. unemployment rate. Investors worried this signaled a “hard landing” was becoming more likely.
However, the odds of a recession starting within the next year are still relatively low, economists said.
In other words, a soft landing is still in the cards, they said.