Economy Often Defies Soft Landing

By EDMUND L. ANDREWS

Published: August 11, 2006

WASHINGTON, Aug. 10 — In the cool and quiet marble corridors of the Federal Reserve, the strategy for taming inflation sounds painless, even soothing: a “soft landing” for the economy after several years of flying high.

As the central bank contended on Tuesday, when it decided to pause in its two-year effort to raise interest rates, inflation is “elevated” right now but will begin to decline because economic growth is poised for a modest slowdown.