Yellen's Optimistic View on the U.S. Economy's Soft Landing

Thursday, 19 September 2024, 17:45

Yellen emphasized her belief that the U.S. economy is achieving a soft landing, as she had projected two years ago. The signs of stabilizing inflation and a robust job market support this view. With current unemployment at 4.2% and inflation under 3%, Yellen noted significant economic progress. She spoke during The Atlantic Festival 2024, discussing the effects of past economic policies.
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Yellen's Optimistic View on the U.S. Economy's Soft Landing

Yellen's Confidence in U.S. Economic Recovery

Treasury Secretary Janet Yellen stated on Thursday that the U.S. economy is indeed encountering the soft landing she forecasted two years prior amid rising inflation post-pandemic.

In a live interview at The Atlantic Festival 2024 with journalist Ron Brownstein, she reflected on initial concerns about the economy and the Biden administration's economic management.

Current Economic Indicators

Highlighting the state of the economy, Yellen pointed to an unemployment rate of 4.2% and an inflation rate below 3%. The Federal Reserve recently cut interest rates by 50 basis points, marking a shift after a prolonged period of combating inflation that peaked at 9.1% in mid-2022.

Future Economic Outlook

While Yellen acknowledged risks persistent in the economy, she expressed optimism about the healthy labor market, stating:

  • Wages growing at a sustainable pace.
  • Continued positive job growth.
  • The potential for maintaining current economic momentum.

Yellen concluded by affirming her belief in the economy's path towards stability, indicating it could lead to excellent outcomes for workers and the broader economic landscape.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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