(Reuters) – St. Louis Federal Reserve Bank President James Bullard on Thursday said he sees a “good chance” the central bank will engineer a soft landing for the economy, meaning that it will be able to get inflation under control without large job losses.
“The base case is for a soft landing,” Bullard told the Little Rock Regional Chamber in Arkansas. Rather than a “stagflation” scenario of near-zero growth and high inflation that some are envisioning, he said, the “better bet” is growth will slow to its longer-run norm and inflation will rapidly come under control, adding the labor market could cool off a bit and still be strong.
(Reporting by Ann Saphir; Editing by Chris Reese)