A short recession would be better for most investors than a soft landing, economist says

Fri, 10/13/2023 - 16:27

A photo of a man in silhouette looking at a line chart pointing downward. — Whether or not the US is in a recession is a politically charged debate.
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A soft-landing, stagflation scenario is worse than a short recession, a Manulife economist told CNBC.
That's because a recession is the only thing that will get the Fed to cut interest rates, Frances Donald said.
"A soft landing, stagflation type of environment where you get no growth and no Fed cuts, that's worse for most investors."

A soft landing would spell more woes for investors compared to a short recession, according to Manulife Investment Management Global Chief Economist and Strategist Frances Donald.