Due to strong unemployment, there is a possibility of no landing beyond soft landing and hard landing.

[Anchor]
Usually, the game is called "soft landing" if it grows slowly compared to a plane landing, and "hard landing" if it shocks citizens due to a sharp decline in the economy.

The strong U.S. job market is raising the possibility of a "no-landing" without the economy sinking, contrary to expectations of a soft or hard landing.

This is reporter Lee Seung-yoon.

[Reporter]
U.S. President Joe Biden expressed confidence in a soft landing in the economy, encouraged by the growth in new jobs in September.

[Joe Biden / President of the United States] There has been very good news about the U.S. economy over the last two days.]

The number of jobs increased by 254,000 in a month, far exceeding expert forecasts, the largest increase in half a year since March.

The unemployment rate was also 4.1%, down 0.1 percentage points from the previous month, and below expert expectations (4.2%).

Inflation has also stabilized.

The Personal Consumer Expenditure Price Index (PCE), an inflation gauge valued by the U.S. central bank, the Federal Reserve, hit its lowest level in three and a half years in August.

It was up 2.2% from the same period a year ago, below expert forecasts, and close to the 2% targeted by the Fed.

As a result, attention was paid to whether the U.S. economy would make a "soft landing" or a "hard landing" due to a sharp downturn in the economy,

The possibility of non-landing, so-called 'noring' has increased.

It means the economy is better than a soft landing, but there are also concerns that inflation increases the likelihood of a recurrence and hinders interest rate cuts.

In fact, the Fed's forecast for a cut in its benchmark interest rate next month has been adjusted from a 0.5 percentage point big cut to a 0.25 percentage point or a freeze.

Former Treasury Secretary Larry Summers also warned, "Last month's 0.5 percentage point cut was a mistake," adding, "Now the Fed must be careful about the risk of non-landing and hard landing."

As a result, market expectations for a significant rate cut by the U.S. Fed are set back, and the impact is gradually expanding on global financial markets, with dollar buying trends growing.

I'm YTN's Lee Seungyoon.



Video editing: Song Bo-hyun

Design: Kim Jinho