A Runway To A Soft Landing Heaves Into View Through A Fed Windshield Darkly

Perhaps, only perhaps, the American economy is headed for the proverbial soft landing – lower inflation without massive job losses. The economy added 223,000 jobs last month, the unemployment rate ticked down to 3.5 per cent, the lowest level in the post-Covid era. (If you extend the calculation out a couple more decimal places, University of Michigan economist Justin Wolfers points out, it was 3.468%, the lowest since 1969, reports Axios.) But despite this strength, a portion of which might be due to labor hoarding by firms remembering how difficult it was to find workers in the recent past, there are hints that wage inflation is beginning to taper off.