Federal Reserve Spokesperson: The US economy may face a hard landing

Nick Timiraos, a mouthpiece for the Federal Reserve, published an article in The Wall Street Journal stating that over the past year, U.S. economic policymakers have been focused on achieving a so-called soft landing - reducing inflation without causing an economic recession. Now, a new group of "pilots" are considering adjusting their course and they admit this could potentially lead to a hard landing for the economy. In recent days, President Trump and his senior advisors have shown indifference towards rising risks of private sector investment being hampered by trade uncertainties. They believe that while there may be need for detoxification in terms of spending and hiring, falling stock values aren't worrisome and inflation might rise in the short term. Some analysts warn that Trump's messages may reflect strategic efforts to improve bargaining positions with trade partners at the expense of leaving bond investors and the Fed dumbfounded thereby maintaining inclination towards rate cuts. Trump's impulsive actions have prompted European authorities to take measures increasing economic stimulus and defense spending. Analysts say events from past two weeks indicate that market plunges won't likely change Trump's course which will help reset Wall Street expectations. Andy Laperriere, head of US policy research at Piper Sandler says: Everything he does tells us he is not joking around; he fundamentally believes in tariffs.