Federal Reserve spokesperson: The U.S. economy may have achieved a soft landing, but no one is willing to declare victory

BlockBeats News, February 15 — “Federal Reserve mouthpiece” Nick Timiraos wrote that key indicators of the U.S. economy are pointing in the same positive direction: inflation is decreasing, the labor market remains strong, and economic growth is steady. This is not a final conclusion, but it is the closest the U.S. economy has ever been to achieving a soft landing (avoiding a recession while containing inflation). Four years ago, many economists believed this was impossible. Today, the scenario of the U.S. economy easing inflation back to the Federal Reserve’s 2% target without falling into a recession has once again become credible.

However, even without the need for oxygen masks, it is still premature to unfasten seat belts. The Fed’s preferred inflation indicator, the core PCE annual rate, is currently approaching 3%. Several forecasters expect that, as tariff-related price increases transmit to more areas, inflation will not see significant progress this year. Meanwhile, the labor market may not be as resilient as last week’s reports suggest. Jeffrey Cleveland, Chief Economist at Payden & Rygel, stated objectively that the labor market has been weak, and this year the unemployment rate is more likely to rise than fall.