Vanguard’s Economists Aren’t Buying Talk of a Soft Landing: Q&A
- Full inflation normalization will take a while, Joe Davis says
- ‘Modest weakening in the labor market’ needed to get to 2%
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A rallying stock market, cooling inflation and better-than-expected economic data are causing more investors to bet that the Federal Reserve can achieve a “soft landing” in which consumer prices normalize without triggering a recession. Vanguard Group’s economists aren’t buying it.
Joe Davis, the fund manager’s global chief economist and head of its Investment Strategy Group, joined the What Goes Up podcast to explain why that is. He also offered his reaction to the Fed’s latest meeting and gave his outlook for the bond market.