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US Economy Avoids Recession, Signals Soft Landing Ahead

10/5/2025

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Summary

Story summary

The United States economy has avoided a recession for three years, with low unemployment and record-high equity markets.
A yield curve inversion occurred in 2022, historically signaling recession; manufacturing contracted, while services account for over 75% of the economy.
The Federal Reserve has begun cutting rates, signaling gradual policy easing; GDP is projected at 1.7% for 2026 with a soft-landing.

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Story summary

The United States economy has avoided a recession for three years, with low unemployment and record-high equity markets.
A yield curve inversion occurred in 2022, historically signaling recession; manufacturing contracted, while services account for over 75% of the economy.
The Federal Reserve has begun cutting rates, signaling gradual policy easing; GDP is projected at 1.7% for 2026 with a soft-landing.