- The US economy is showing strong resilience, leading some analysts to question whether we might see a “no landing” scenario for the economy.
- The possibility of the US economy avoiding a recession also implies that the Fed may have to raise interest rates by more than expected.
- Nadaq 100’s price-action this week shows that the market is still divided over whether rising rates or a robust economy are more important to stocks.
What if We Don’t See a Hard or Soft Landing for the US Economy?
Heading into 2023, the big debate was how “hard” the global economy would fall. The so-called “hard landing” scenario involves a sudden and steep economic decline, with little to no time for central banks to implement policies to prevent it. This could lead to a recession or depression. A “soft landing” scenario is a gradual economic decline that central banks can mitigate with policies to avoid a recession.
The steady drumbeat of economic…
