Soft landing is 'a possibility' as interest rates fall, bank CFO says

With rates of interest coming down, many experts are optimistic a pair of soppy landing. John Woods, Vice Chair and CFO, Citizens Bank, joined TheStreet to discuss his outlook on the economy heading into 2025.

Related: PCE Inflation report adds to case for every other big Fed rate cut in November

Full Video Transcript Less than:

CONWAY GITTENS: And where are you finding optimism or where are you seeing or where are you feeling the foremost optimistic relating to the economy.

JOHN WOODS: Yeah, relating to the economy, I feel the genuine question is whether we will finally prove with a Goldilocks soft landing. And a year ago, we had some concerns. Frankly, if I go back to the starting place of 2023, most of us thought we were going to have a recession by the tip of '23. check your watch. Or not it truly is September of '24. No recession and recession odds have been falling. It truly is in point of fact great. I mean, the pliability to have rates come down without unemployment rising too a lot in point of fact appears like a possibility, which a year, year and a 1/2 of ago, we'd have said turn into probably not.

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So I'm excited a fine technique to claim that soft landing remains a possibility for us as the Fed is bringing rates down. And if we can bring rates down, now not have unemployment, which is one within the total Fed has a dual mandate price stability and full employment, for the labor market, if we can see rates come down and be sure that that unemployment wouldn't upward push too a lot and keep inflation under regulate, that'll be great for one and all. And there is an actual possibility to see that as we get into 2025. Or not it truly is miles in point of fact positive to see a more normalized yield curve where we've gotten the two year rate about 20 basis points under the 10 year, the 10 year rate. It truly is amazingly encouraging and is reflective of a more normalized growth environment. And so it truly is something that I'm having a look at for seeing as we get into 25.