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“This is leading many to rightly question whether the long-forecast recession is really inevitable or whether a soft-landing of the economy” is possible.Īnalysts point to two trends that may help stave off an economic contraction. economy is genuinely displaying signs of resilience,” said Gregory Daco, chief economist at EY, a tax and consulting firm. And so does the belief among some economists that the United States might actually achieve an elusive “soft landing,” in which growth slows but households and businesses spend enough to avoid a full-blown recession. Gas prices have dropped, and grocery prices have leveled off, giving Americans more spending power. Despite much higher borrowing costs, thanks to the Federal Reserve’s aggressive streak of interest rate hikes, consumers keep spending, and employers keep hiring. If not this quarter, then by next quarter. WASHINGTON (AP) - The warnings have been sounded for more than a year: A recession is going to hit the United States.
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