Goldman Sachs: Soft Landing for economy still possible

Goldman Sachs Chief Economist Jan Hatzius is cautiously optimistic for the economy:

“It requires sustained … output growth, a rebalancing of the labor market via sharply lower job openings and a moderate rise in unemployment.” It also requires a “large decline in inflation,” Hatzius said.

“While much can still go wrong and our probability that a (mild) recession will start in the next year remains about one in three, we see some encouraging signs that the economy is moving toward all three of these goals.”

“Sharply lower commodity prices, a stronger dollar, and large improvements in supply-chain disruptions all suggest that goods price inflation will continue to abate.”