The solid hiring revealed in Friday’s jobs report for November, along with a raft of other recent economic data, is boosting hopes that the U.S. economy will achieve a “soft landing” next year rather than a widely feared recession.
A so-called soft landing would occur if the economy slowed enough to bring inflation down to the Federal Reserve’s 2% target, without tumbling into a deep recession.
It’s a tricky task. The Fed has sharply raised its key interest rate to try to moderate borrowing and spending and tame inflation. The risk is that the Fed would miscalculate and keep its benchmark rate — which affects many consumer and business loans — too high for too long and end up causing a recession.
Find out how the economy is performing in Virginia.