- U.S. Treasury Secretary Janet Yellen believes the economy is in good condition and on track for a soft landing, despite recent slower job growth.
- 142,000 new jobs were added in August, below the expected 160,000, but unemployment dropped to 4.2%.
- Yellen praised the Federal Reserve for reducing inflation without tipping the economy into a recession.
Washington, 9 September (FinanceFlashNews) – Janet Yellen, the U.S. Treasury Secretary, said over the weekend that the American economy remains in good shape, even as recent labor market data has shown some slowdown. Speaking at the Texas Tribune Festival, Yellen assured that the economy is on a path toward a soft landing, a scenario in which inflation decreases without causing a recession, as reported by CNBC.
Yellen acknowledged the U.S. is experiencing less rapid job growth compared to the post-pandemic “hiring frenzy,” but she emphasized that the economy is still recovering and “essentially operating at full employment.”
This statement came after the release of August’s labor data, which revealed that the U.S. added 142,000 new jobs, falling short of economists’ expectations of 160,000. Despite the lower job creation, unemployment in August dipped slightly to 4.2%, and the number of new jobs was higher than in July.
On Friday, the S&P 500 index dropped, marking its worst performance since March 2023, amid concerns over the labor market’s health. However, Yellen downplayed fears of an economic slowdown, stating, “I don’t see any red flashing lights.”
Yellen also praised the Federal Reserve for its actions in bringing down inflation without plunging the economy into a recession. The slowing of consumer price growth and the absence of a recession are key indicators of a “soft landing,” which Yellen believes the economy is achieving. She added that most analysts expect the Federal Reserve to lower interest rates later this month.
Keywords: U.S. economy, Janet Yellen, soft landing, job growth, Federal Reserve
