The Fed raising its forecast for economic growth by the end of this year shows this agency's confidence in the soft-landing possibility despite the aggressive and hawkish interest rate hiking process throughout the past year. Even, quite a few “figures” believe the Fed can achieve this soft-landing goal..., typically the Goldman Sachs economist:
However, Viet Hustler maintains the assessment from last week's macroeconomics article and believes it's still too early for the Fed to celebrate the soft-landing possibility. Especially when the impact of the credit crunch situation on businesses remains an unknown. Because the effects of the high interest rate policy took 1 year to impact the banking crisis at the present time, the current credit crunch will also need a similar time period to start affecting businesses, the labor market, savings, and consumption.
In this week's macroeconomics article, Viet Hustler will discuss the soft-landing possibility from the Fed's view and from the neutral view of economic data that may have been “overlooked” by the Fed.
