Will Fed Manage a ‘Soft’ or ‘Hard’ or ‘No’ Landing?

The US economy in 2021 turned in its best performance since 1984 as it emerged from the pandemic, but growth slowed markedly last year as the Federal Reserve jacked up interest rates to combat the fastest inflation in four decades. Its aim: Cooling down price pressures without driving the economy into a ditch. In 2022, housing slumped, manufacturing faltered — but the labor market remained strong. Economists, policy makers and investors are pondering what comes next: an economic soft landing, a hard landing or something in between. Or maybe even no landing at all.

1. What’s a soft landing?