Yellen Confident in U.S. Economy, Sees Path to ‘Soft Landing’ Without Major Layoffs

Treasury Secretary Janet Yellen reassured the public on Saturday that the U.S. economy remains robust, despite recent weak job reports that have unsettled investors and led to stock market declines. Speaking at the Texas Tribune Festival in Austin, Yellen acknowledged a slowdown in job growth compared to the post-pandemic hiring frenzy but emphasized that the economy is “deep into a recovery” and “operating at full employment.” She noted that while job openings have decreased, significant layoffs have not materialized, indicating economic stability. Yellen also pointed to the Federal Reserve’s ability to reduce inflation without triggering a recession, describing the current situation as a “soft landing.” Her comments followed the release of nonfarm payroll data for August, which showed lower-than-expected job growth but a slight dip in the unemployment rate to 4.2%. The Treasury Secretary remained optimistic about the economy’s trajectory, downplaying fears of an imminent recession.