US economy heading for soft landing

Recent US economic data suggests the super power is heading for a soft landing, according to Simon W...

Recent US economic data suggests the super power is heading for a soft landing, according to Simon Ward, chief economist at New Star. “The economy has cooled since mid 2006 in lagged response to monetary policy tightening but the economy’s data looks consistent with a soft landing,” he says. “The key risk is that housing weakness spreads to consumer spending but the labour market has held up well to date and healthy corporate finances argue against significant employment cut backs. Solid money supply expansion is also a support to economic activity.” Ward notes soft landings have hist...