Insider Q&A: An economist who sees a recession coming despite economy's resilience so far
For more than a year, the U.S. economy has defied predictions of a forthcoming recession
By PAUL WISEMAN
Published - Jul 31, 2023, 09:27 AM ET
Last Updated - May 06, 2024, 01:14 PM EDT
WASHINGTON (AP) — For more than a year, the U.S. economy has defied predictions of a forthcoming recession. It has withstood 10 interest rate hikes in 16 months from an inflation-fighting Federal Reserve. In June, America's employers added a healthy 209,000 jobs.
Will the economy remain resilient? Can the Fed achieve a notoriously difficult “soft landing” — slowing growth just enough to tame inflation without causing a recession?
The Associated Press spoke recently with Gus Faucher, chief economist at PNC Financial Services Group. The conversation has been edited for length and clarity.
Q: The job market is cooling but remains strong. Does that suggest a soft landing?
