US Treasury Secretary Janet Yellen assured this Saturday that economic indicators show that the country is entering a phase of “soft landing.”
In a conversation in Austin, Texas, Yellen celebrated the Latest unemployment figurespublished this Friday, which indicated a reduction of one tenth of this indicator in August compared to July, up to 4.2%.
“When I look at the economy (…) I see profound growth “This leads to a recovery, with an economy operating at essentially full employment,” the secretary of state said at a conference organized by the Texas Tribune portal.
Yellen added that, “even if there are risks” For the economic recovery of the country, it is essential to have been able “reduce inflation significantly” as your government did.
The Treasury secretary’s comments come a day after the release of unemployment data, which showed that net new jobs increased again in August to 142,000, 53,000 more jobs than a month earlierafter the July figure was revised to 89,000.
Federal Reserve plans to cut interest rates soon interest rateaccording to the regulator’s chairman, Jerome Powell, at a recent public event. “The time has come to adjust monetary policy”he stressed a few days ago.
Until drop announced this SaturdayThe unemployment rate has been rising since last March and job creation has slowed considerably in recent months, a situation that puts more pressure on the Fed to begin a downward trajectory.
He next September 17th The Federal Open Market Committee (FOMC) begins its meeting, which will announce a day later the amount of the expected rate cut, once inflation approaches 2%. After four months of decline, it stands at 2.9% in July.
After the eleven uploads made since March 2022 In an attempt to control prices, the Fed has kept interest rates between 5.25% and 5.5% since July last year, its highest level since 2001.
