Federal officials feel no major downturn in the coming few years

Two officials of the Federal Reserve on Thursday have said that the economy is probably going to be avoiding a major downturn as there was a major intervention by the central bank in the previous year.

The central bank in the United States has a decent chance achieving a smooth landing for the economy of United States in the year despite the tensions which have renewed in the Middle East. The president of Federal Reserve in St. Louis, James Bullard has said that the soft landing happens when the economy is going to slow down to the trend rate of growth without a major collapse.

For United States, the growth pace had been in excess of 3% annually during the middle of 2018, soft landing is going to mean that the growth rate is going to be close to a point of 2%.

In a different interview though, Neel Kashkari who is the Fed President in Minneapolis has said that recession is not going to be in their forecast in any way.

Kashkari has said that this is not going to be in the current forecasts and recession as per him is not going to come in next year or the year after in any way.

He said that his guess was that the growth is going to continue in a modest manner hopefully with a continued stronger market for labor and the growth in wages which is going to help the families and consumers spend a lot more money.

The Fed has seen the signs that the economy had been slowing in the previous year and had been shifting course where they eventually cut the benchmark rate by the three quarterly moves at consecutive meetings.