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Soft Landing

Definition

A slowdown that reduces inflation or overheating without a severe contraction, used as an economic description rather than a guaranteed outcome.

United States

What would a soft landing look like for the U.S. economy?

Inflation would move toward the Fed’s goal while the economy avoids a recession. A possible pattern would be slower price growth, continued job gains and positive output growth as demand cools.

Federal Reserve monetary policy guide

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