soft landing

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Soft landing

A term describing a growth rate high enough to keep the economy out of recession, but also slow enough to prevent high inflation and interest rates.

Soft Landing

A situation in which a central bank raises interest rates gradually, but steadily, to curb inflation, while still attempting to keep the economy out of a recession. A hard landing is generally effective at reducing inflation, but it slows down growth. However, soft landings are considered more desirable than allowing inflation to run amok, which could necessitate a hard landing.

soft landing

A slowing of economic growth that avoids a recession and the accompanying high unemployment. The Federal Reserve may pursue a restrictive monetary policy to achieve a soft landing when the economy has been expanding at an unsustainable rate.
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