Labor Market Strength Is No Justification for a Recession
This week’s Consumer Price Index (CPI) release offers the latest evidence that inflation is declining.
For the Federal Reserve, it should also strengthen the case for patience in its approach to inflation.
“Whether the labor market converges to one that is still strong and works for everyday people . . . is in the hands of the Fed,” Roosevelt’s Justin Bloesch and Mike Konczal argue in a new blog post.
“With measures of labor demand cooling and key sectors catching up in supply, the Fed has a choice: They can allow for a wait-and-see period that lets a soft landing materialize, or they can insist that unemployment must go up to crush inflation, introducing the risk of a serious recession.”
Read on for four reasons to be optimistic about a soft landing.
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