By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss said that when it comes to what the Federal Reserve says it is going to do next month, believe them.
"They're going to raise rates," Goss said. "That's an economic headwind. We're going to see unemployment rates rise, instead of coming down. We're going to see employment growth coming down, instead of increasing. We're going to see the economy slow down. It's a stagflation for sure. That's higher inflation at a time that the economy is either not growing or in a recession."
Goss remains skeptical that the economic brakes being applied can result in a soft landing for the U.S.
"Here's the scary part, the Federal Reserve, normally, they get it wrong most times," Goss said. "They go too far almost every time. When we get into an inflationary territory, they attempt to bring us in for a soft landing by raising rates. They generally go too far and it's not a soft landing. It's a bumpy landing."
Nonetheless, Goss is not sure that the news will be all bad after the bumps.
"I think it's not going to be quite as grim as most economists," Goss said. "Almost 100% of economists are saying recession next year. I think we could avoid a recession, but it's going to be slow to no growth."
Goss issues two surveys monthly of the Midwest region, including Kansas.