U.S. Treasury Secretary Dismisses Recession Fears Despite Weak Job Reports
On Saturday, U.S. Treasury Secretary Janet Yellen reassured the public about the economy’s resilience despite recent disappointing job reports that have unsettled investors and affected the stock market.
Speaking at the Texas Tribune Festival in Austin, Yellen acknowledged that job growth had slowed following a surge during the post-pandemic economic reopening. However, she maintained that the U.S. economy remains strong and is on course for a “soft landing.” She highlighted that there have been no significant layoffs, despite a decrease in hiring activity.
Yellen’s remarks followed a Bureau of Labor Statistics report showing nonfarm payrolls increased by 142,000 in August, falling short of the anticipated 161,000. This data, along with a decline in job growth and the S&P 500’s recent performance, has fueled concerns about a potential recession.
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Despite these concerns, Yellen pointed out that the unemployment rate has dropped to 4.2% and that job gains in August were higher than in July. She expressed confidence in the Federal Reserve’s ability to handle the economy effectively, with expected interest rate cuts contributing to a stable economic environment.
Yellen emphasized that the progress in reducing inflation without sparking a recession is significant, describing the situation as a “soft landing.”
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
