Soft landing

Definition

When the Fed brings inflation down without causing a recession.

The story

Picture landing a plane. Come down too fast and you crash (a recession). Too slow and you overshoot the runway (inflation stays high). A soft landing is touching down smoothly: prices cool, and people keep their jobs.

Why markets watch it

Whether markets expect one shapes how they react to each jobs and inflation report.

Connects to

We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms