Janet Yellen Believes US Economy Has Achieved Soft Landing
According to US Treasury Secretary Janet Yellen, the American economy has shown significant improvements in the past six months, reaching what she calls a “soft landing” scenario. This occurs when the Federal Reserve’s measures, such as interest rate hikes, successfully slow down inflation without causing a recession.
Yellen supports her claim by pointing to the latest labor market and inflation numbers. She highlights the continuous strength of the labor market, with the unemployment percentage consistently below 4% for 23 consecutive months, a feat not seen in five decades. Additionally, the economy added 216,000 jobs in December.
In a recent post on X, Yellen stated:
The American people, workers, and businesses have helped put us on a path to a soft landing. The President’s economic agenda is giving them the tools they need to grow the economy, including historic investments in infrastructure, clean technology, and semiconductors.
Yellen also acknowledges the significant decline in inflation over the past six months. However, she notes that there is still work to be done regarding housing and food prices, which have remained high. Yellen sees polls indicating that Americans are becoming more optimistic about their future.
This aligns with Yellen’s previous statements from December, where she emphasized that while there is always a risk of recession, she didn’t consider it particularly high at that time. She believes that people will gradually start feeling better about the economy over time.
Hot Take: US Economy Encounters a Soft Landing Amidst Improvements
Janet Yellen, US Treasury Secretary, asserts that the recent developments in the American economy signify a successful achievement of a soft landing. Yellen points to low inflation figures and a robust labor market as evidence of this favorable scenario. With unemployment consistently below 4% for 23 months and the addition of 216,000 jobs in December, the US labor market displays remarkable strength. Yellen further highlights the public’s growing optimism about the economy’s future. Although she acknowledges remaining concerns regarding housing and food prices, Yellen’s remarks indicate confidence in the country’s economic progress.
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