WSJ Nick Timiraos: There is a lot of optimism on a soft landing. We are there right now.

  • There’s a lot of optimism on a soft landing
  • But there is a concern that inflation could pick up
  • There is also a concern the Fed may also be the obstacle to the soft landing pushing rated too high and leading to slower growth
  • Next week we will likely see a mild inflation reading
  • it is impossible to tell whether the Fed will keep rates higher for longer or cut rates sooner
  • The market and the Fed are now on the same side.
  • The Fed want to use the interest rate tool to be the primary weapon (not quantitative tightening).

This article was written by Greg Michalowski at Source