Treasury Secretary Janet Yellen remains confident in the strength of the U.S. economy, dismissing recent recession predictions by economists. Speaking at the Wall Street Journal CEO Council event in Washington, D.C., Yellen expressed her skepticism towards these predictions, emphasizing the lack of a solid intellectual foundation for such claims. One crucial factor supporting her optimism is the absence of a persistent increase in inflation expectations.
Yellen also expressed positive sentiments regarding efforts to combat inflation, stating, “I personally don’t foresee any significant challenges in completing this final phase.” She underscored the importance of keeping inflation expectations under control throughout the process.
These statements come amidst President Joe Biden’s struggles with declining job-approval ratings as he prepares for his 2024 re-election campaign. Yellen assured the audience that the administration is doing everything within its power to address cost reduction in various sectors.
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Yellen, a former chair of the Federal Reserve, delivered these remarks ahead of Jerome Powell’s scheduled press conference following the central bank’s latest decision on interest rates.
See: Fed will try to ‘Keep Calm and Carry On’ amid talk of rate cuts and recession.
She concluded by outlining her vision for a soft landing, characterized by sustained economic growth, a robust labor market, and controlled inflation. Yellen firmly believes that the current trajectory aligns with this favorable outcome.
