Summers Says US Soft Landing ‘Very Real Possibility’ Now
- Interest rate sensitivity is down, labor market remains strong
- But markets are overpricing how many cuts the Fed will make
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Former Treasury Secretary Lawrence Summers said he sees the potential for a soft landing in the US economy as inflation glides down while the labor market remains elevated.
“A soft landing probably looks more likely today than it has at any point since” 2021, Summers, a Harvard University professor, said at an Economic Club of New York event Thursday. A soft landing isn’t assured, he added, but “certainly a very real possibility.”