Economists at oligarchic investment bank Goldman Sachs on Monday lowered the chances of the US entering a recession in the next 12 months from 25 percent to 20 percent, citing a slew of recent positive economic data indicating a “soft landing” for the Federal Reserve, CNBC reports.
“The main reason for our cut is that the recent data have reinforced our confidence that bringing inflation down to an acceptable level will not require a recession,” wrote Goldman chief economist Jan Hatzius. “But the easing in financial conditions, the rebound in the housing market, and the ongoing boom in factory building all suggest that the US economy will continue to grow, albeit at a below-trend pace.” Hatzius said the bank expects another rate increase from the Fed next week, but it will be the last one for a while as it appears domestic inflation has been tamed.