Federal Reserve mouthpiece: US economy may face a hard landing

Odaily Odaily News reports that over the past year, US policymakers have been focused on achieving the so-called "soft landing", that is, reducing inflation without causing an economic recession. Now, policymakers are considering revising their course, and they themselves acknowledge that this may lead the economy to a hard landing. In recent days, US President Trump and his senior advisers have shown indifference to the rising risk of private sector investment being dampened by trade uncertainty. They believe that "detoxification" may be needed in terms of spending and hiring, and that the decline in stock prices is not a concern, and that inflation may rise in the short term. It is certain that the US economy was stable in growth and the stock market was booming when Trump took office, but there were also vulnerabilities due to stagnation in the housing sector and cooling in the labor market. At the beginning of this year, investors were indifferent to these flaws, as they expected the new government to focus on reviving economic growth. After Trump's election in November last year, the stock market soared, as investors expected tax cuts and deregulation to provide a bullish stimulus, just like in Trump's first year as president in 2017. Dario Perkins, an economist at GlobalData TS Lombard in London, said: "People could only see the good side of what Trump promised at the time. But this has basically dissipated, and now we are back to the observation period of economic recession." (Jinshi)