The US Finance Minister Janet Yellen believes in an economic soft landing in the USA despite the stock market turmoil following unexpectedly weak American statistics.
It looks good. I don't see any red warning lights flashing, she said in a Bloomberg interview during a visit to Austin, Texas, on Saturday.
She added that she has an eye on the downside risks in the labor market, but that she sees continued stable job growth and that the unexpectedly low figures for new jobs are roughly in line with what is required to handle the increase in the workforce in the USA.
The interview was conducted after Wall Street had its largest stock market decline in a week since the turbulence in the banking sector early in the spring of 2023, with a price drop of over 4 percent for the S&P 500 index.
There are certainly risks, but it has really been fantastic that we have been able to bring down inflation as much as we have and still have strong growth, said Yellen.
This is what most people call a soft landing, she added.
