Economist John Chang shared his views during GlobeSt. Healthcare conference
By John B. Mugford
Economist John Chang of Marcus & Millichap, who made a keynote presentation during the Dec. 12 GlobeSt Healthcare conference in Scottsdale, Ariz., said the Fed’s attempt to accomplish a soft landing “has never happened before.” (HREI™ photo)
Fans of the comedy classic “Airplane” probably got a kick out of a line from the movie that economist John Chang referred to during his keynote address at the ALM/GlobeSt. Healthcare conference in Scottsdale, Ariz., in mid-December.
In describing what the U.S. Federal Reserve is hoping to accomplish with the economy, Mr. Chang, senior VP and national director of research and advisory services with Marcus & Millichap Inc. (NYSE: MMI), quipped: “Jerome Powell (chair of the Federal Reserve) has been saying, ‘What we want to achieve a soft landing.’ … and he believes it is doable.
“It’s almost like we have this plane that is going through all of this turbulence. It’s a challenging flight … the winds are blowing, everything is going crazy, and (the pilot) is trying to land this airplane … and he’s sweaty.”
In Mr. Chang’s description, a hypothetical person asked Mr. Powell about the likelihood of pulling off a soft landing amid so much turbulence, saying, “‘Surely, you can’t be serious?’
“Chairman Powell answers, ‘Well, of course I’m serious, and stop calling me Shirley.’”
It was a fine ode to “Airplane,” and an interesting depiction of the current state of the economy and the Fed’s attempts to not only right the ship – with the soft-landing approach – but to be careful about not “overcooking” the recovery, which would lead to higher unemployment and a potential recession.
Could the Fed’s strategy go wrong?
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