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interests / soc.culture.polish / Barron's Is The Economy Headed For a Soft Landing, Stagflation, or a Crash?

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Barron's Is The Economy Headed For a Soft Landing, Stagflation, or a Crash?

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Barron's Is The Economy Headed For a Soft Landing, Stagflation, or a Crash?

Scenario three: Fed tightening weakens interest-sensitive sectors of the economy and dampens asset markets, but a systemic financial crash is avoided. Persistent inflation reduces household income, and this, together with higher financing costs and falling financial wealth, leads to a drop in consumption; fixed investment falls with the anemic prospects for consumption. The economy enters a period of low growth or recession coupled with persistent inflation well above the 2% target.

https://www.marketwatch.com/articles/fed-economy-soft-landing-stagflation-crash-51653086991?mod=mw_latestnews

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