The White House believes the US economy can still nail a “soft landing” as the large-scale government investments enacted by Joe Biden help buoy the labour market in the months and years ahead, a top adviser to the president said.
The comments from Heather Boushey, a member of the White House council of economic advisers, come as many economists fear a significant slowdown and possibly a recession as the Federal Reserve barrels forward with the most aggressive plan to raise interest rates and root out high inflation since the early 1980s.
Fed officials projected this month that the US would narrowly avoid a contraction in 2023, with output increasing by just 0.5 per cent. US central bankers expect the nation’s unemployment rate to rise from 3.7 per cent in November to 4.6 per cent by the end of next year, implying the likely loss of tens of thousands of jobs.