Yellen: The basic scenario for the US economy is a soft landing
US Treasury Secretary Janet Yellen stated that, in her opinion, the basic scenario for the US economy is a soft landing.
Yellen, at the press conference held on the sidelines of the annual meetings of the IMF and the World Bank held in Marrakech, Morocco, stated that they are monitoring the possible economic effects of the Palestinian-Israeli conflict, but do not believe that the situation will affect the outlook. global economies for now.
‘BASIC SOFT LANDING SCENARIO’
Yellen stated that the US economy is on the right track, the labor market is performing strongly and inflation is declining:
“I think the basic scenario for the US economy is a soft landing. Of course, this comes with risks, and among them are global shocks. The war in Ukraine continues to damage global economic prospects, generating significant cost increases for low-income countries and causing oil and food prices to rise. The situation in Israel also raises concern. “So I’m not saying a soft landing is a given, but I still think it’s the most likely route.” he said.
Yellen also said she will meet with China’s Central Bank Governor Pan Gongsheng in Marrakesh this week.
US-CHINA RELATIONS
Stating that the United States and China seek cooperation on global challenges such as debt restructuring and climate change, a healthy economic relationship that benefits both sides, while protecting their national security interests, Yellen said:
“I am waiting to meet with Gongsheng, Governor of the Central Bank of China. I believe we have made significant progress in deepening our communication. We communicate on economic and financial issues that concern both countries. We have a good communication channel through which we can discuss the issue of debt. “While progress is slow and there is certainly room for improvement, this is something we have been focused on for a long time and will continue to focus on.”
Stating that the global economy depends on the economies of the United States and China, Yellen said both countries have a role to work together to address concerns about the global economy.
Yellen added that both countries agree that this is “something necessary and desirable” and that cooperation is needed on critical issues such as the fight against climate change. (AA)