#USEconomy #SoftLanding #JanetYellen
Treasury Secretary Janet Yellen expressed confidence in the U.S. economy, stating that it remains solid and is heading toward a "soft landing." This assessment comes despite recent disappointing job reports that have unsettled investors and negatively impacted the stock market.
Yellen emphasized that while job growth has decelerated compared to the post-pandemic hiring surge, significant layoffs are not occurring. She believes the economy is "well into a recovery" and is "essentially functioning at full employment." The unemployment rate has ticked down to 4.2%, and job growth in August surpassed that of July.
Yellen sought to alleviate concerns about economic conditions, stating, "I don't see any warning signs." She noted that the U.S. has made significant progress in reducing inflation, which many would refer to as a "soft landing." Analysts widely anticipate that the Federal Reserve will reduce interest rates this month.
The recent job data has sparked apprehension regarding the Federal Reserve's ability to achieve a "soft landing"—raising interest rates to curb inflation and subsequently implementing cuts before a recession occurs. Yellen's statements aim to reassure the public that the economy is strong and stable, despite the recent slowdown in job growth.
Original Article: https://www.cnbc.com/2024/09/07/yellen-says-us-economy-remains-solid-heading-toward-soft-landing.html
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