Markets Soar on Hopes of a Soft Landing, But the Economy's Path Remains Uncertain
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Stock market has rallied recently on hopes that the Fed can tame inflation without causing a recession.
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Recent economic data showing cooling inflation and moderating job growth have boosted optimism around a "soft landing."
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Markets have gotten ahead of themselves before on soft landing hopes, so investors shouldn't celebrate yet.
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The key will be if slowing growth causes businesses to cut jobs, which could trigger a recession.
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Whether the economy can achieve a soft landing without high unemployment will remain an open question in 2023.