Global Market – Whether US Fed will manage to get “Soft Landing”?
This week we will discuss that whether US fed will manage to get “Soft Landing” of economy. Here by we mean by “Soft Landing” is that inflation gets under control without any major downturn in economy. U.S. economic data released so far in the month of August 2023 indicates mix view.
U.S. economic data from 1-Aug-23 to 11-Aug-23
Jobs data released in the month of August 2023 indicate stable number with no major surprises, neither positive nor negative. U.S. Inflation data released on 10-Aug-23 came at 3.20% Vs estimate of 3.30%. PPI & Core PPI data released on 11-Aug-23 came above estimate.
What is “Soft Landing” of economy?
“Soft Landing” of economy here means that inflation comes under control without any major economic shock or recession. U.S. Fed ‘s objective is to keep inflation target at 2% for long term and optimum employment, which usually can be referred to as stable economy with steady growth.
Equichain Wealth Advisors: Market View & Opinion
Current economic data from U.S. indicates mix picture and we see this as long-term positive development for U.S. economic and global stability. We also expect some softness in economic activity and expect market to correction in next 1 – 2 months.
Looking at the data mentioned in table above, we believe this set of data does indicate moderation in economic activity at slow pace, which we assume as high probability of “Soft Landing”.