The United States is currently facing a period of economic uncertainty, with fears of inflation and rising unemployment. However, President Joe Biden remains optimistic that the country will experience a “soft landing” economically.
In a recent State of the Union address, Biden expressed confidence that inflation could be kept in check without leading to high unemployment rates. This sentiment has been supported by data showing that inflation is currently at manageable levels, with the core PCE rising at a rate of 2.5% annually and unemployment remaining below 4%.
Despite recent reports indicating a slight uptick in inflation and signs of a weakening labor market, many economists believe that the country is still on track for a soft landing. While concerns about a potential recession linger, indicators such as stable average hourly earnings and productivity growth suggest that core inflation remains below 3%.
While the unemployment rate has shown a slight increase in recent months, it is still within manageable levels. Economists are closely monitoring the Sahm rule, which suggests that a recession is likely if the three-month average of the unemployment rate rises significantly above a previous low.
Overall, the current economic situation in the United States remains relatively stable, with the potential for a soft landing still within reach. While challenges lie ahead, the Biden administration and economic experts are cautiously optimistic about the country’s economic prospects in the months to come.