FameEX Hot Topics | U.S. Treasury Chief Janet Yellen Proclaims Achievement of 'Soft Landing', Optimism Returning Among Americans

Janet Yellen, the U.S. Treasury Secretary and former Chairman of the U.S. Federal Reserve, has expressed confidence in the American economy's recent progress, suggesting that the nation has accomplished a 'soft landing'. This term refers to the scenario where Federal Reserve interventions, such as interest rate hikes, manage to reduce inflation without triggering a recession. Yellen's optimism is based on the country's latest economic indicators.

Yellen's assessment of the U.S. economy over the past six months points to significant improvements. She cites the current state as a soft landing, attributing it to the Federal Reserve's effective management of monetary policy. This positive outlook is supported by recent labor market data and inflation figures, indicating a stable economic trajectory.

Highlighting the robustness of the labor market, Yellen pointed out that the unemployment rate has stayed below 4% for 23 consecutive months, a record not seen in half a century. Additionally, the American economy added 216,000 jobs in December alone, reflecting sustained job market strength.

In her communication on a social media platform, Yellen lauded the contributions of American workers and businesses in steering the economy towards this soft landing. She credited the President's economic policies, including substantial investments in infrastructure, clean technology, and semiconductors, for equipping citizens with the necessary resources to foster economic growth.

Yellen also acknowledged the significant reduction in inflation over the last six months. However, she recognized that challenges remain, particularly in housing and food prices, which continue to exert upward pressure on overall inflation. Despite these challenges, Yellen noted an uptick in optimism among Americans about their economic future, as reflected in recent polls.

Her current perspective aligns with her statements from December, where she downplayed the risk of a recession. At that time, Yellen believed that the recession risk was not exceptionally high and anticipated that people would gradually feel more positive about the economy. This gradual improvement in sentiment and economic indicators seems to underpin her current view that the U.S. economy is successfully navigating a soft landing, balancing inflation control with economic growth.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.