Feasibility Analysis of the U.S. Federal Reserve Achieving Soft Landing

Abstract

At present, the United States is witnessing an unprecedented level of inflation, which has not been observed in the past 40 years. To navigate the economy, the US Federal Reserve has opted to raise interest rates. This paper provides an in-depth analysis of the potential impacts of the Federal Reserve's policy, drawing upon a wide range of forecasts from economists across various fields and perspectives to present a comprehensive picture of the situation. The central question is whether the US economy will be able to achieve a "soft landing", as anticipated by the Federal Reserve, or whether it will ultimately enter into a recession. In the event of a recession, the paper delves into the severity and duration of the potential downturn, providing insight into what Americans may expect. Given the United States' critical role in the global economy, the Federal Reserve's policy decisions have far-reaching effects. Therefore, comprehending the possible results and consequences of the current interest rate hikes is vital for policymakers and ordinary citizens alike.