Yellen 'Feeling Very Good' About Soft Landing for US Economy [View all]
Source: Bloomberg
Treasury Secretary Janet Yellen said she’s increasingly confident that the US will be able to contain inflation without major damage to the job market, hailing data showing a steady slowdown in inflation and a fresh influx of job seekers. “I am feeling very good about that prediction,” Yellen said Sunday when asked about her previous hopes that the US would avoid a recession while still reining in consumer-price gains. “I think you’d have to say we’re on a path that looks exactly like that.”
Speaking in an interview on her aircraft en route back from attending the Group of 20 summit in New Delhi, the Treasury chief also played down any risk from China’s efforts to increase the sway from the separate BRICS grouping of major emerging nations. “The G-20 “remains the premier forum for global cooperation,” she said. Yellen and President Joe Biden attended the gathering, which was skipped by China’s President Xi Jinping, against the backdrop of a raft of positive data on the world’s largest economy.
Headline inflation has slowed toward 3% — though still above the Federal Reserve’s 2% target — without any decline in payrolls or GDP. “Every measure of inflation is on the road down,” Yellen said. She also highlighted that while the US unemployment rate increased in August after reaching the lowest levels in more than a half-century earlier this year, that jump wasn’t caused by a large wave of layoffs.
The jobless rate hit 3.8% last month, thanks in part to an increase in the labor force participation rate to the highest level since February 2020, just as Covid began to spread.
Read more: https://www.bloomberg.com/news/articles/2023-09-10/yellen-feeling-very-good-about-us-sticking-a-soft-landing
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