Yellen says the U.S. economy remains solid and heading for a “soft landing” | Wilnesh News

Treasury Secretary Janet Yellen sought to reassure the public on Saturday that the U.S. economy remains strong despite a series of weak jobs reports that unnerved investors and weighed on stocks.

“We’re seeing a reduction in the frenzy around hiring and job openings, but we’re not seeing meaningful layoffs,” Yellen said at the meeting. Texas Tribune Festival In Austin. “I’m focused right now on the downside risks to employment, but I think what we’re seeing and hopefully we’ll continue to see is a good, solid economy.”

Yellen said job growth had slowed compared with the “hiring frenzy” when the United States reopened after the Covid-19 pandemic, but the economy was “deeply recovered” and “basically operating at full employment.”

The comments come a day after the finance minister Bureau of Labor Statistics The report released another month of lower-than-expected employment data.

Nonfarm payrolls, a measure of U.S. job creation, rose by 142,000 in August, below Dow Jones’ forecast of 161,000. The misstep renewed concerns about a labor market slowdown, with the S&P 500 falling on Friday, ending its worst week since March 2023.

However, the unemployment rate fell slightly to 4.2%, and employment growth in August was higher than in July. The weak July report revived fears of a U.S. recession, sending stocks sharply lower early last month

Yellen on Saturday sought to calm jitters about the state of the economy: “I don’t see red lights flashing.”

The jobs data raised concerns about the Fed’s ability to achieve a so-called “soft landing,” in which it raises interest rates to control inflation and then cuts them before the economy enters recession. The Fed is widely expected to cut interest rates this month.

Yellen said the U.S. is on that path: “It’s great to be able to get inflation as meaningfully down as we have. This is what most people call a soft landing,” she said.