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Soft landing looks more plausible, but the Fed isn’t ready to call it done
The US economy is showing the clearest combination of falling inflation, steady employment and firm growth seen since before the pandemic, reviving hopes that a “soft landing” may be within reach. Recent data have strengthened the case that inflation can cool back toward the Federal Reserve’s 2% goal without the economy slipping into recession, even as policymakers and forecasters remain cautious about declaring success. January’s inflation report showed underlying price pressures continuing to moderate. Core consumer prices were up 2.5% from a year earlier, the lowest since 2021. Some of that improvement has ... (full story)