Economist: A soft landing in the U.S. depends on fiscal stimulus

Nancy Lazar, a senior economist in charge of macro research at Piper Sandler, said in a report that the United States can defeat inflation without destroying the economy, but only if fiscal stimulus measures are taken. Lazar said the U.S. GDP could “easily” grow by 1.5% this year, driven by student loan forgiveness, tax cuts and other policies. On the other hand, implementing stimulus measures could make it harder for the Fed to drop Intrerest Rate. According to Lazar, “the conditions for a soft landing are still not in place, and easing policy in the face of substantial fiscal stimulus risks repeating the catastrophic inflation cycle of the '70s.” ”