When everyone expects a soft landing, brace for impact

 

www.bloomberg.com

6 Reasons Why a US Recession Is Likely — and Coming Soon

Anna Wong, Tom Orlik

1 minute

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The government is staying open for now. But Bloomberg Economics sees risks ahead, from strikes to higher rates and oil prices.

Fed Chair Jerome Powell speaks following a Federal Open Market Committee (FOMC) meeting in Washington on Sept. 20.

Photographer: Sarah Silbiger/Bloomberg

When everyone expects a soft landing, brace for impact. That’s the lesson of recent economic history — and it’s an uncomfortable one for the US right now.

A summer in which inflation trended lower, jobs remained plentiful and consumers kept spending has bolstered confidence — not least at the Federal Reserve — that the world’s biggest economy will avoid recession.

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Why a US Recession Is Still Likely — and Coming Soon