SPXV - Could There Be A Soft Landing?
2024-06-03 13:24:19 ET
Summary
- A soft landing refers to a smooth economic cool-down that avoids recession - after a period of rapid economic expansion.
- The Federal Reserve aims to achieve a soft landing from the current expansion, while history proves the task's inherent challenges.
- Inflation and fear of a second "run" are delaying the start of Federal Reserve interest rate cuts for 2024.
- Market indicators remain mostly positive.
- The chances for a soft landing are actually reasonable.
Introduction: What Makes a Soft Landing?
The amount of talk on financial sites, channels, and articles about a soft landing is impressive indeed. A soft landing has a kind of instant market watcher alarm clock effect.
In order to understand whether a soft landing or some other kind is coming, we first need a clear definition:
" A soft landing implies the cooling down of the economy after a period of rapid expansion which happens smoothly."...
Could There Be A Soft Landing?