The myth of the central bank ‘soft landing’

People walk past the US Federal Reserve building in Washington, DC (AFP)Premium
People walk past the US Federal Reserve building in Washington, DC (AFP)
 wsj 3 min read . Updated: 24 Jun 2022, 01:16 AM IST Jon Sindreu, The Wall Street Journal

Most tightening cycles historically ended in recessions. Whether this shows the power or powerlessness of central banks, it isn’t good news.

“Soft landings" are easier to find in the legendarium of central banks than in historical reality.

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