As debate continues over whether the US has achieved an economic soft landing or not, Nobel Prize-winning economist Joseph Stiglitz argues that uncertainty still remains.
In a conversation with Yahoo Finance senior reporter Alexandra Canal at the annual Yahoo Finance Invest, Stiglitz discusses how the successful soft landing of the 1990s differs from today’s inflation crisis, driven in part by post-pandemic supply chain disruptions and high oil prices (CL=F, BZ=F) following the Russian invasion of Ukraine.
Although the Federal Reserve raised interest rates to combat inflation, Stiglitz argues that a stronger fiscal response is needed. “We are in the soft landing, but it ends on January 20,” Stiglitz says, denoting the effect President-elect Donald Trump’s second presidency could have on the economy.
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This post was written by Cindy Mizaku.
