Feasibility Analysis of the U.S. Federal Reserve Achieving Soft Landing

Research Article
Open access

Feasibility Analysis of the U.S. Federal Reserve Achieving Soft Landing

Wenjun Zhang 1*
  • 1 University of Toronto    
  • *corresponding author z2037173667z@gmail.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/26/20230589
AEMPS Vol.26
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-95-9
ISBN (Online): 978-1-915371-96-6

Abstract

At present, the United States is witnessing an unprecedented level of inflation, which has not been observed in the past 40 years. To navigate the economy, the US Federal Reserve has opted to raise interest rates. This paper provides an in-depth analysis of the potential impacts of the Federal Reserve's policy, drawing upon a wide range of forecasts from economists across various fields and perspectives to present a comprehensive picture of the situation. The central question is whether the US economy will be able to achieve a "soft landing", as anticipated by the Federal Reserve, or whether it will ultimately enter into a recession. In the event of a recession, the paper delves into the severity and duration of the potential downturn, providing insight into what Americans may expect. Given the United States' critical role in the global economy, the Federal Reserve's policy decisions have far-reaching effects. Therefore, comprehending the possible results and consequences of the current interest rate hikes is vital for policymakers and ordinary citizens alike.

Keywords:

Inflation, Interest rates, US. Federal Reserve, Soft landing, Recession

Zhang,W. (2023). Feasibility Analysis of the U.S. Federal Reserve Achieving Soft Landing. Advances in Economics, Management and Political Sciences,26,308-312.
Export citation

References

[1]. US Economic Outlook 2023: A Soft Landing or Deep Recession? Teneo, Teneo, (2023). https://www.teneo.com/us-economic-outlook-2023-a-soft-landing-or-deep-recession/#:~:text=In%20all%20scenarios%2C%20we%20expect,returns%20to%20pre%2Dcrisis%20levels.

[2]. DiCamillo, N. (2022). There's Hope for the Fed's ‘Soft Landing’ but Economists Are Nervous. Quartz, 2. https://qz.com/theres-hope-for-the-feds-soft-landing-but-economists-1849844179.

[3]. Hajric, V. and Regan, M. P. (2022). Fed Can Still Achieve Soft Landing, Says UBS's Jeremy Zirin-BNN Bloomberg. BNN. https://www.bnnbloomberg.ca/fed-can-still-achieve-soft-landing-says-ubs-s-jeremy-zirin-1.1762478.

[4]. Levin, J. and Leticia, M. (2022). Analysis | a Soft Landing Is in Sight, but Can the Fed Stick It? The Washington Post, WP Company. https://www.washingtonpost.com/business/energy/a-soft-landingis-in-sight-but-can-the-fed-stick-it/2022/11/18/8a066be8-673d-11ed-b08c-3ce222607059_story.html.

[5]. Shalett, L. (n.d.). Can the Fed engineer a soft landing? Morgan Stanley. Retrieved March 22, 2023, https://www.morganstanley.com/ideas/soft-landing-fed-liftoff.

[6]. Strauss, A. (2022). Four Reasons Why the Federal Reserve Is Tightening into a Recession. Forbes, Forbes Magazine. https://www.forbes.com/sites/adamstrauss/2022/09/30/four-reasons-why-the-federal-reserve-is-tightening-into-a-recession/?sh=274435d2bd18.

[7]. Farge, E. (2022). U.N. Agency Warns of Recession Linked to 'Imprudent' Monetary Policy. Reuters, Thomson Reuters. https://www.reuters.com/markets/rates-bonds/un-agency-warns-recession-linked-imprudent-policy-decisions-report-2022-10-03/.

[8]. Liesman, S. (2022). The Fed's Aggressive Hiking Campaign Will Lead to a Recession, According to CNBC Survey. CNBC, CNBC. https://www.cnbc.com/2022/05/03/the-feds-aggressive-hiking-campaign-will-lead-to-a-recession-according-to-cnbc-survey.html.

[9]. Henney, M. (2022). Fed's Powell Abandons Promise of 'Soft Landing' amid Inflation Fight. Fox Business, Fox Business. https://www.foxbusiness.com/economy/feds-powell-abandons-promise-soft-landing-inflation-fight.

[10]. Smith, C. (2023). Federal Reserve keeps faith in a US 'soft landing'. Retrieved March 22, 2023, https://www.ft.com/content/2b1502bc-5f14-4970-99ef-6a8b2b910d11.

Cite this article

Zhang,W. (2023). Feasibility Analysis of the U.S. Federal Reserve Achieving Soft Landing. Advances in Economics, Management and Political Sciences,26,308-312.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN：978-1-915371-95-9(Print) / 978-1-915371-96-6(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.26
ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. US Economic Outlook 2023: A Soft Landing or Deep Recession? Teneo, Teneo, (2023). https://www.teneo.com/us-economic-outlook-2023-a-soft-landing-or-deep-recession/#:~:text=In%20all%20scenarios%2C%20we%20expect,returns%20to%20pre%2Dcrisis%20levels.

[2]. DiCamillo, N. (2022). There's Hope for the Fed's ‘Soft Landing’ but Economists Are Nervous. Quartz, 2. https://qz.com/theres-hope-for-the-feds-soft-landing-but-economists-1849844179.

[3]. Hajric, V. and Regan, M. P. (2022). Fed Can Still Achieve Soft Landing, Says UBS's Jeremy Zirin-BNN Bloomberg. BNN. https://www.bnnbloomberg.ca/fed-can-still-achieve-soft-landing-says-ubs-s-jeremy-zirin-1.1762478.

[4]. Levin, J. and Leticia, M. (2022). Analysis | a Soft Landing Is in Sight, but Can the Fed Stick It? The Washington Post, WP Company. https://www.washingtonpost.com/business/energy/a-soft-landingis-in-sight-but-can-the-fed-stick-it/2022/11/18/8a066be8-673d-11ed-b08c-3ce222607059_story.html.

[5]. Shalett, L. (n.d.). Can the Fed engineer a soft landing? Morgan Stanley. Retrieved March 22, 2023, https://www.morganstanley.com/ideas/soft-landing-fed-liftoff.

[6]. Strauss, A. (2022). Four Reasons Why the Federal Reserve Is Tightening into a Recession. Forbes, Forbes Magazine. https://www.forbes.com/sites/adamstrauss/2022/09/30/four-reasons-why-the-federal-reserve-is-tightening-into-a-recession/?sh=274435d2bd18.

[7]. Farge, E. (2022). U.N. Agency Warns of Recession Linked to 'Imprudent' Monetary Policy. Reuters, Thomson Reuters. https://www.reuters.com/markets/rates-bonds/un-agency-warns-recession-linked-imprudent-policy-decisions-report-2022-10-03/.

[8]. Liesman, S. (2022). The Fed's Aggressive Hiking Campaign Will Lead to a Recession, According to CNBC Survey. CNBC, CNBC. https://www.cnbc.com/2022/05/03/the-feds-aggressive-hiking-campaign-will-lead-to-a-recession-according-to-cnbc-survey.html.

[9]. Henney, M. (2022). Fed's Powell Abandons Promise of 'Soft Landing' amid Inflation Fight. Fox Business, Fox Business. https://www.foxbusiness.com/economy/feds-powell-abandons-promise-soft-landing-inflation-fight.

[10]. Smith, C. (2023). Federal Reserve keeps faith in a US 'soft landing'. Retrieved March 22, 2023, https://www.ft.com/content/2b1502bc-5f14-4970-99ef-6a8b2b910d11.

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.