Harvard Economist Credits Fed Policy for Navigating 'Golden Path' of Sustained Growth and Slowing Inflation
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Harvard economist Jason Furman believes the US economy has achieved a soft landing and the risk of recession is not unusually high.
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Furman credits the Federal Reserve for raising rates to combat inflation without triggering a recession. He says the Fed should start cutting rates soon.
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Furman admits economists are often poor at predicting recessions. He says his own outlook has shifted from expecting higher unemployment to achieve a soft landing.
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The latest strong GDP report showing broad-based growth supports the soft landing thesis and avoided a second wave of inflation.
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Sustained growth and slowing inflation put the economy on a "golden path" that matches the Fed's goals.