Soft Landing

What does it mean?
A term used to describe a rate of economic growth high enough to avoid recession, but slow enough to avoid high inflation.

In Other Words...
When the economy is growing at strong rate, the Fed will try to engineer a soft landing by raising interest rates enough to slow the economy down without putting it into recession.

Alan Greenspan is a master at the soft landing.

Related Links
The Federal Reserve (the Fed) Tutorial - Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.

All about Inflation Tutorial - What causes inflation? How does it affect your investments and standard of living? This tutorial has the answers.

Related Terms
Alan Greenspan | Fed | Hard Currency | Hard Landing | Inflation | Recession

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