‘Soft Landing’ or Recession? How Each Might Affect America – RVBusiness – Breaking RV Industry News

WASHINGTON — The solid hiring revealed in Friday’s jobs report for November, along with a raft of other recent economic data, is boosting hopes that the U.S. economy will achieve a “soft landing” next year rather than a widely feared recession, according to an Associated Press report.

A so-called soft landing would occur if the economy slowed enough to bring inflation down to the Federal Reserve’s 2% target, without tumbling into a deep recession.

It’s a tricky task. The Fed has sharply raised its key interest rate to try to moderate borrowing and spending and tame inflation. The risk is that the Fed would miscalculate and keep its benchmark rate — which affects many consumer and business loans — too high for too long and end up causing a recession.

In the past, the Fed’s policymakers have often sought to engineer soft landings after a spurt of economic growth ignited inflation or threatened to do so. Most frequently, the Fed has failed.

What would a soft landing look like, compared with a potential recession?

Click here to read the full Associated Press report.

Source: https://rvbusiness.com/soft-landing-or-recession-how-each-might-affect-america/