Fed's Sahm Sees Path for Soft Landing, But Bumpy Ride Still Ahead
• Sahm optimistic about potential for soft landing based on recent jobs, CPI, and PPI data showing inflation slowing without economic growth slowing • Bumpy ride ahead still likely as incoming inflation data will remain noisy • Unclear exactly when rate cuts will start in 2023, but likely later than markets expect as Fed will be conservative • Cuts likely before inflation gets back down to 2% target • Timing of cuts may not matter much as US economy strong; market rates already easing up