October 6, 2022

Business economists give soft-landing the side-eye

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Data: NABE; Chart: Nicki Camberg/Axios

A new survey shows business economists are skeptical the Fed can bring inflation down to its target without sinking the economy.

Why it matters: The survey offers a bit of insight into the way the Fed’s actions can affect the psychology of people who help make decisions in corporate America.

Driving the news: The numbers, published on Monday morning, are from the National Association of Business Economists — a group of people who work largely for private-sector companies, rather than academia.

  • Results show roughly three-quarters of respondents don’t think the Fed can bring inflation down to its stated target of 2% without setting off a recession.

The impact: If private-sector economists are advising executives that a recession is likely around the corner, that could create something of a self-fulfilling prophecy — as executives delay new projects and investment, both of which make a recession more likely to come to pass.



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