Amid concerns over the U.S. labor market, Treasury Secretary Janet Yellen has reassured the public about the economy's resilience, despite recent weak job reports.
What Happened: Yellen assured the public of the U.S. economy's strength, despite recent weak job reports. Speaking at the Texas Tribune Festival in Austin, Yellen said, "We're seeing less frenzy in terms of hiring and job openings, but we're not seeing meaningful layoffs," reported CNBC on Saturday.
Yellen acknowledged that job growth has decelerated compared to the post-pandemic "hiring frenzy," but emphasized that the economy is "deep into a recovery" and "basically operating at full employment." Her comments came a day after the Bureau of Labor Statistics released another month of underwhelming job data.
Nonfarm payrolls rose by 142,000 in August, falling short of the Dow Jones forecast of 161,000. This miss has stoked fears about a slowing labor market, with the S&P 500 ending the week with its worst performance since March 2023. However, the unemployment rate dipped to 4.2%, and job growth in August surpassed July's figures.
Yellen attempted to alleviate concerns about the economy, stating, "I don't see red lights flashing." The recent jobs data has sparked worries about whether the Federal Reserve can achieve a "soft landing" by raising interest rates to control inflation and then cutting them before a recession hits. Yellen expressed confidence in this path, noting the significant reduction in inflation.
Why It Matters: The context surrounding Yellen's comments is crucial. On Friday, the Treasury Secretary warned that eliminating clean energy tax credits provided by the Inflation Reduction Act would be a "historic mistake," highlighting the potential economic repercussions.
Additionally, the August jobs report released showed signs of a cooling labor market, which eased recession fears that had intensified earlier.
Further, on Thursday, economists suggested that a 0.5% rate cut by the Federal Reserve wouldn't be surprising after private payrolls fell short.
Moreover, the U.S. services sector posted a stronger-than-expected expansion in August, easing concerns about a potential economic slowdown.
- Job Creation Falls Short Of Expectations In August, Unemployment Rate Ticks Lower, Wage Growth Soars
Image via Flickr
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
儘管最近就業報告疲軟,但由於對美國勞動力市場的擔憂,財政部長珍妮特·耶倫還是向公衆保證了經濟的彈性。
發生了什麼:儘管最近的就業報告疲軟,但耶倫還是向公衆保證了美國經濟的實力。CNBC週六報道,耶倫在奧斯汀的德州論壇報節上發表講話時說:「我們在招聘和職位空缺方面的狂熱程度有所降低,但我們沒有看到有意義的裁員。」
耶倫承認,與疫情後的 「招聘狂潮」 相比,就業增長有所減速,但他強調經濟正在 「深度復甦」,「基本上處於充分就業狀態」。她的評論是在勞工統計局發佈又一個月的令人難以置信的就業數據的第二天發表的。
8月份非農就業人數增加了14.2萬人,低於道瓊斯預測的16.1萬人。這次失誤引發了人們對勞動力市場放緩的擔憂,標普500指數本週收盤創下了自2023年3月以來最差的表現。但是,失業率降至4.2%,8月份的就業增長超過了7月份的數字。
耶倫試圖緩解對經濟的擔憂,他說:「我看不到紅燈閃爍。」最近的就業數據引發了人們的擔憂,即聯儲局能否通過提高利率來控制通貨膨脹,然後在經濟衰退來臨之前降低利率來實現 「軟着陸」。耶倫表示對這條道路充滿信心,指出通貨膨脹率顯著下降。
爲何重要:耶倫言論的背景至關重要。週五,財政部長警告說,取消《通貨膨脹減少法》提供的清潔能源稅收抵免將是一個 「歷史性錯誤」,凸顯了潛在的經濟影響。
此外,8月份發佈的就業報告顯示出勞動力市場降溫的跡象,這緩解了先前加劇的對衰退的擔憂。
此外,經濟學家週四表示,在私人就業人數不足之後,聯儲局下調0.5%的利率並不奇怪。
此外,美國服務業在8月份公佈的擴張強於預期,緩解了人們對潛在經濟放緩的擔憂。
- 8月份創造的就業機會低於預期,失業率下降,工資增長飆升
圖片來自 Flickr
這個故事是使用 Benzinga Neuro 創作的,由 Kaustubh Bagalkote