REUTERS/ Robert Galbraith
- Treasury Secretary Janet Yellen says she's "feeling very good" about chances of a US soft landing.
- "I think you'd have to say we're on a path that looks exactly like that," she said, per Bloomberg.
- Yellen joins Paul Krugman and Larry Summers in suggesting the US will avoid a recession.
Treasury Secretary Janet Yellen says she's feeling optimistic the US can fight off inflation without pushing the economy into recession.
"I am feeling very good about that prediction," Yellen said on her way home from the G20 summit held in New Delhi, per Bloomberg.
"I think you'd have to say we're on a path that looks exactly like that," she said, referring to hopes of a soft landing. "Every measure of inflation is on the road down," she added.
Yellen has long been hopeful about the US economy, despite a chorus of bearish voices predicting a looming recession will soon hit the nation as higher interest rates squeeze businesses and consumers.
The Federal Reserve has hiked interest rates from near-zero levels to upwards of 5% in a bid to cool inflation. It's succeeded in taming price pressures towards its 2% target, with inflating slowing to around 3% in recent months.
Yellen grounded her latest comments in data showing easing in the US labor market, which could relieve upward pressure on prices.
She joins a group of other market thinkers who have been positive about the US, including Paul Krugman — a Nobel Prize-winning economist — and one of her predecessors as Treasury chief, Larry Summers.
The two experts have pointed to encouraging inflation data and a cooling labor market as reasons for their bullishness.
Meanwhile, other top voices including David Rosenberg, Leon Cooperman, and Jeremy Grantham, have all forecasted an economic downturn ahead in some of the most gloomy outlooks for the US.
from Business Insider https://ift.tt/8HDCFep
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