Does US Economic Resilience Mean a Miracle Is Possible?

In the US, the economy has been holding up and inflation has been slowing, suggesting a soft landing may be underway. But is that really what’s going on? And if so, can the economy and employment escape relatively unscathed? In this Economic Viewpoint, we take a look back at the labour market analysis we did a year ago. Since September 2022, job openings have come down without a spike in unemployment. If the resulting slowdown in wage growth continues, it could help get inflation back to the Fed’s target.