U.S. government spends like there’s a crisis; public deficit reaches $2.1 trillion. Can the Fed avoid a recession? Only one soft landing since the 1980s!

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the U.S. government has indeed been spending heavily, and the public deficit has reached $2.1 trillion over the past year. This significant deficit is a result of various factors, including increased spending and lower revenues.

As for the Federal Reserve’s ability to avoid a recession, it’s a challenging task. Historically, the Fed has only managed a “soft landing” once since the 1980s23. A soft landing refers to the Fed’s ability to slow down the economy to curb inflation without triggering a recession. The current economic conditions, including high inflation and rising interest rates, make this a difficult balance to achieve.

Sources:

https://www.crfb.org/blogs/deficit-was-21-trillion-over-past-year

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https://www.federalreservehistory.org/essays/recession-of-1981-82


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