Fed on track to navigate U.S. economy to soft landing, says Sully
SAN DIEGO (KUSI) – Sully from “On the Air with Sully and Little Tommy” says despite the recent rise in the stock market, inflation hasn’t yet halted and isn’t expected to.
Despite this, the Federal Reserve Chair Jerome Powell is on track to navigate the U.S. economy to a soft landing, but it’s too early to declare victory.
Since the Fed started hiking the funds rate early this year, Sully argues that the U.S. economy can achieve a soft landing, even though the path is narrow.
Accomplishing this is going to require a rebalancing of the labor market via sharply lower job openings coupled with a moderate rise in unemployment, and a large decline in inflation.
Sully joined KUSI’s Paul Rudy to discuss the tactics of the Fed and why they may work to prevent a potential recession in the U.S. economy.