Federal Reserve Chairman Powell: It is difficult to judge how the banking crisis has caused changes in expectations of a soft landing for the economy

According to reports, Federal Reserve Chairman Powell stated that the risk of economic recession is non-linear; It is difficult to judge how the banking crisis has caused changes in soft landing expectations; The United States still has a soft landing opportunity and is trying to find one.

Interpretation of this information:

Federal Reserve Chairman Powell gave a statement regarding the risk of economic recession and the importance of a soft landing for the United States economy. Powell noted that although the risk of a recession is non-linear, meaning that predicting the likelihood of a recession can become increasingly difficult as time passes, the United States still has the opportunity for a soft landing.

A soft landing refers to a situation where the economy gradually slows down, but without disheartening economic growth or activity that could lead to a recession. Powell emphasized the importance of such a landing for the overall economy, as it could help avoid the detrimental effects of a recession.

Powell also mentioned the banking crisis and how it has affected expectations of a soft landing. However, he noted that it is hard to judge the extent to which the crisis has caused changes in those expectations. This statement suggests that despite the potential impact of other significant events affecting the economy, such as the banking crisis, the United States may still have the potential for a gradual economic slowdown without falling into a recession.

In conclusion, Powell’s statement highlights the non-linear nature of predicting the risk of a recession and the importance of a soft landing for the United States economy. He stressed that the banking crisis has undoubtedly affected expectations of a soft landing, but noted that the United States still has a chance to achieve one.