Should America be cheerful about the economy?
Reasons to be cheerful? Those White House officials not rifling through classified documents in a Delaware garage (more on that later) have been able to enjoy back-to-back weeks of good economic news to start 2023. Taken together, last week’s robust December jobs report and this week’s inflation report that shows slowing price rises have boosted optimism about the possibility of a so-called “soft landing,” in which the Fed manages to tame inflation without causing a recession. Just a few months ago, it was a question of when, not if, America would dive into negative growth. A soft landing was seen as a pie-in-the-sky delusion; in October, a Bloomberg model put the chance of a recession at 100 percent.