Treasury Secretary Janet Yellen said in a CNN interview on Friday that the United States has achieved a “soft landing” after years of concerns about the U.S. economy and high inflation rates following the COVID-19 pandemic. This is a scenario that many economists once considered unlikely.
“I think what we're seeing right now is a soft landing, and my hope is that it continues,” Yellen said on CNN on Friday.
Yellen also noted that the U.S. avoided a recession in 2023, saying in an interview that “there was a lot of pessimism about the economy, but that really proved to be unwarranted.” He criticized the economists who made the prediction.
The comments came hours after the December jobs report was released, showing that the U.S. added 216,000 jobs last month, far more than the 160,000 that economists expected. The response was bigger than expected.
Yellen credited the American people and President Joe Biden for the soft landing, saying, “Americans go to work every day, participate in the labor market, and start new businesses; “We are trying to create incentives that will bring about this.” These are the tools we need to help grow this economy. ”
Despite Yellen's claims of a soft landing, some economists still warn of a possible recession. Economists at banks such as Citigroup, Deutsche Bank and JPMorgan Chase & Co. believe the U.S. economy is likely to slip into recession over the next 18 months.
Yellen has long maintained that the U.S. is on track for a soft landing, or lowering inflation to its 2% target, while avoiding a major economic downturn, but has expressed skepticism about whether that goal can be achieved. There were many ways to look at it. However, the U.S. ended 2023 in a better position than most expected, as inflation fell to 3.1% from a peak of 9.1%.
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