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This is it, the economy is grinding to a halt. Not good either.

You can't slow inflation by raising interest rates without slowing the economy. There are no rainbow unicorns here. The best outcome here is a so-called "soft-landing" in which growth slows but we don't have a recession or spike in unemployment. Taking the recent jobs report and this CPI report, we might just get that soft landing we need.

Also, fyi, while wages overall did not keep up with inflation, they did in the service sector and largely for lower paying jobs. I see that as correcting an imbalance in the economy, and as a stabilizer for American society as a whole.

We're not going to get a soft landing. They're going to push unemployment up to 6-8% to accomplish their policy goals of containing wage inflation and breaking the back of unionization drives (probably closer to 8% after something like CMBS detonates in about a year or so). That wage inflation in lower paying jobs is actually what concerns policymakers.

Talk about a "soft landing" is very 2006-ish.

What evidence is there for this?

Gut-felt cynicism mostly, I think.

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