The November jobs report, which showed solid hiring, has raised hopes for a “soft landing” for the U.S. economy next year. A soft landing would involve a slowing economy that brings inflation down to the Federal Reserve’s 2% target without falling into a recession.
However, achieving a soft landing is a delicate task, especially as the Fed has raised its key interest rate to control borrowing and spending to combat inflation. There is a risk that the Fed could miscalculate and keep interest rates too high for too long, which could lead to a recession.
The recent economic data, including the jobs report, has sparked optimism about the country’s economic prospects. The focus now shifts to how the economy is performing in specific regions such as Tucson and Arizona.
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