Fed Holds Rates Steady, But No Landing Talk Signals Above-Trend Growth and Persistent Inflation
• Talk of a "no landing" economy has emerged as the Fed leaves rates unchanged and dampens expectations of a March rate cut.
• "No landing" means above-trend economic growth and inflation that is overheating. It's not a soft landing or recession.
• Not everyone agrees we're headed for a no landing scenario. Some see inflation moderating back to the Fed's target.
• Consumers continue facing high inflation and interest rates in the near-term. Real wage growth is positive for now.
• Consumers should work on improving their credit to take advantage when rates fall later this year.