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The Path to a Soft Landing
I do think there's a path to bring down inflation while maintaining what I think all of us would regard as a strong labor market. And the evidence that I'm seeing suggests we are on that path. There are many factors that have been pushing inflation up that have nothing to do with the tight labor market. Russia's war on Ukraine raised food and energy prices. The disruption from the pandemic caused supply bottlenecks that led to outright shortages pushed up, for example, the prices of cars dramatically new and used because of semiconductors. We had big shifts in the way people live and low interest rates, and housing prices rose a lot.