Yellen Optimistic About U.S. Economic Soft Landing

U.S. Treasury Secretary Janet Yellen believes the U.S. economy is headed towards a 'soft landing,' with inflation decreasing while maintaining a strong labor market. However, she notes that reducing housing costs remains a critical challenge in fully taming inflation. Yellen emphasized the importance of U.S. deficit reduction to manage interest costs while continuing to invest in economic growth sectors. She also highlighted the need for banking system stability and quick access to liquidity, following the turbulence caused by uninsured deposits in 2023. Financial experts and Federal Reserve officials support this outlook, with recent interest rate cuts seen as steps toward easing capital costs and boosting market confidence. Despite this optimism, there is still caution among some experts regarding the economy's resilience.