Treasury Secretary Janet Yellen sought to calm concerns about the US economy on Saturday, stating that despite recent weak job reports, the economy remains strong and is “basically operating at full employment.”
Yellen acknowledged that job growth has slowed compared to the post-pandemic “hiring frenzy,” but emphasized that the economy is “deep into a recovery” and not experiencing meaningful layoffs.
Her comments come after the Bureau of Labor Statistics reported 142,000 new jobs in August, lower than expected, and a decrease in the unemployment rate to 4.2%.
Yellen downplayed concerns about a recession, saying “I don’t see red lights flashing.” She expressed confidence in the Federal Reserve’s ability to achieve a “soft landing,” bringing inflation under control while avoiding a recession.
The Treasury Secretary’s reassurance aims to alleviate market jitters, as the stock market experienced its worst week since March 2023 following the weak jobs report.
