The U.S. economy is stable and on track for a 'soft landing,' with no significant job losses, according to Yellen.

• Janet Yellen, the Treasury Secretary, stated that she believes the U.S. economy is robust and that the recent decline in job data indicates a gentle slowdown, not a recession.
• The U.S. economy is in a recovery, according to Yellen, who stated that there are no significant layoffs occurring.

Despite recent weak job reports, Treasury Secretary Janet Yellen reassured the public on Saturday that the U.S. economy remains strong. She stated that while there is less frenzy in terms of hiring and job openings, there are no meaningful layoffs. Yellen is attentive to downside risk on the employment side but hopes to see a good, solid economy continue.

The U.S. economy is currently experiencing slower job growth compared to the initial "hiring frenzy" following the Covid-19 pandemic, but it is in a deep recovery and operating at full employment, according to Yellen.

The Bureau of Labor Statistics reported another month of cooler-than-expected jobs data, and the treasury secretary made comments a day later.

The U.S. job creation rate in August was lower than expected, with nonfarm payrolls increasing by only 142,000 instead of the forecasted 161,000. This miss has caused concerns about a slowing labor market, as evidenced by the S&P 500's decline on Friday, marking the worst week since March 2023.

Despite the stock market's steep decline in early August due to renewed fears of a U.S. recession following the weak July report, the unemployment rate decreased to 4.2% and job growth in August was higher than July.

On Saturday, Yellen attempted to alleviate concerns about the economy by stating, "There are no red lights flashing."

The possibility of a "soft landing" is being questioned due to concerns about the Federal Reserve's ability to control inflation by raising interest rates and then cutting them before the economy goes into a recession. It is predicted that the Fed will lower interest rates this month.

Yellen stated that the U.S. has successfully reduced inflation to a significant extent, which is commonly referred to as a soft landing.