The pandemic recession was unusual for many reasons. But one seemingly positive aspect of it was the quick recovery in employment and GDP. Now, with falling inflation—it seems a soft landing (meaning inflation will reduce further without more economic damage) is in sight. However, data provided by the St. Louis Fed shows higher inflation is not the only thing that is still with us. Economic uncertainty is still elevated and high 3 years into the recovery. Uncertainty was last estimated at the end of 2022, perhaps there is more confidence now. Otherwise, it seems we are not out of the woods yet.
Source: St. Louis Fed
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
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