It’s been a long time since the U.S. felt a recession. The current economic expansion is now the longest on record, and dates back to early 2009. Many young adults on the verge of turning 30 have never experienced a recession during their working lives.
Bullard pointed to much looser monetary policy at the Fed in 2019 as one of the reasons for his optimism, noting the Fed cut rates three times last year. He thinks the Fed engineered a soft economic landing in the face of recession worries in the summer of 2019.
“Trade regime uncertainty will continue, but firms are adjusting business strategies to be profitable even in the face of uncertainty.”
He went on to point out that the economy appears to be returning to its long-term, slow rate of growth rather than moving toward sharp collapse.