Steve Rattner, who served as counselor to the Treasury Secretary in the Obama administration made the claim on Friday’s broadcast of Bloomberg’s “Wall Street Week,”.
Rattner said, “I’m not at all in the camp of those who think that a recession is likely this year or probably even the second half — or first half rather, of next year. But, at some point, it becomes anybody’s guess whether we’ll get through this without a recession.”
He added, “History is not on the side of a soft landing. There’s really no precedent for bringing an economy this overheated, with inflation — whether it’s transitory, permanent, or whatever — running at this rate down to anything that looks like 2% without there being a recession.
It would require the skill of the most experienced pilot in the world to achieve that kind of a soft landing. You have to really cool off demand. You have to, unfortunately, raise the unemployment rate, get some slack into the labor market, and that’s a level of precision that, economics is sort of a science, but it’s not that kind of a science.”
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