Is the economy headed for a 'soft landing'?

The outlook is improving as inflation falls. Is a recession becoming less likely?

Wall Street.
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"Predictions of a 'soft landing'" for the economy are "proliferating," said Paul Krugman in The New York Times — and they are starting to appear justified. The latest consumer prices report, showing inflation down to 6.5 percent from 9 percent in June, was "really good news. I mean, really, really good news." I was too optimistic about inflation, and some of my arguments last year that the jump in prices was a "transitory" result of the pandemic "aged poorly." The "inflation pessimists" are probably overshooting the mark, making the same "mistakes inflation optimists were making a year and a half ago." If you consider just the past six months, consumer prices have actually risen at a rate of only 2 percent. It looks increasingly like it won't take a severe recession to get inflation under control. The biggest danger to the economy may be that we "get one anyway if the Fed brakes too hard."

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