Yellen: US Economy Doesn’t Need Drastic Tightening, ‘Soft Landing’ on Track

Yellen says US economy does not need drastic tightening, 'soft landing' on track
© Reuters. FILE PHOTO: U.S. Treasury Secretary Janet Yellen attends a press conference in San Francisco, California, U.S., November 10, 2023. REUTERS/Carlos Barria/File Photo

By Howard Schneider

Exciting news from U.S. Treasury Secretary Janet Yellen! She believes the U.S. economy does not need further drastic monetary policy tightening to stamp out inflationary expectations and is on track to achieve a “soft landing” with strong employment.

Yellen’s optimism was evident after her speech at a lithium processing plant in North Carolina. She emphasized that the signs are very good for achieving a soft landing with unemployment stabilizing and growth slowing to a sustainable level. “I think that’s what we’re in the middle of,” she said.

Inflation has come way down, according to Yellen, and high prices for some goods, such as eggs, are returning to pre-pandemic levels. “And now wage gains are really translating into more real income. So my hope is that Americans gradually will see that things are getting better,” she said.

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