Treasury Secretary Janet Yellen said that despite a number of weak reports on the labor market, the U.S. economy remains solid.
"Undoubtedly, the data indicate a decrease in hiring and vacancies, but we do not see significant layoffs. I am now attentive to the risks of declining employment, and still believe that the current situation points to a solid economy," Yellen said, adding that the economy is “deep into a recovery” and “basically operating at full employment.”
The latest US labor market data indicated that the nonfarm payrolls increased by 142,000 in August, below the forecast of +160,000, while the unemployment rate fell by 0.1% to 4.2%. These data have once again raised concerns about the state of the economy and whether the Fed can clinch a so-called “soft landing". But the finance minister indicated that she did not see red lights flashing, and added that the United States was on its way to a “soft landing.”
“It really has been amazing to be able to get inflation down as meaningfully as we have. This is what most people would call the soft landing,” she said.