news

yellen spoke out with great intensity: believing the economy can have a "soft landing" and openly criticized trump

2024-09-27

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

financial associated press, september 27 (editor shi zhengcheng)on thursday local time, u.s. treasury secretary janet yellen embarked on an intensive public briefing schedule.

while attending the 10th treasury market conference held by the new york fed, she took the time to be interviewed by a number of media and gave her insights on a number of hot topics, covering the state of the u.s. economy, fiscal deficit, and the u.s. dollar. intervention and financial stability.

believe that a "soft landing" can be achieved

the first is the state of the u.s. economy. as treasury secretary, yellen decisively emphasized that she is optimistic that the u.s. economy is moving towards a "soft landing" and inflation under control

yellen said, indicators from the labor market, inflation, economic growth and other aspects all show that the united states is moving in the direction of a "soft landing". she also acknowledged that “risks are always there”, e.g. there is slightly more slack in the labor market than before

the u.s. treasury secretary also said that the “last mile” of reducing inflation now includes housing costs. there is good reason to believe that rent prices will continue to fall, eventually achieving the 2% inflation rate the fed wants. if the u.s. economy continues on its current path, she believes the fed's policy rate will move closer to neutral

yellen also emphasized that as for the speed of cutting interest rates, you have to ask powell.

however, the federal reserve's high interest rates have caused a sudden increase in the pressure on the united states to repay the interest on its national debt, which is indeed yellen's responsibility. she emphasized, in the future, the u.s. government will indeed need to take some deficit reduction measures to control debt repayment pressure.

as the lead department for foreign economic cooperation under the biden administration, yellen also talked about developments in geopolitical cooperation. she said that cooperation with relevant countries is becoming closer, constructive ways have been found to discuss differences, and the two sides are cooperating in some "necessary areas."

what surprised the market was that yellen also took the initiative to mention the issue of the value of the u.s. dollar. although she emphasized that "it should be determined by the market," she also added: " it is conceivable that in extreme cases, intervention in the us dollar”。

bombing trump

it is worth mentioning that compared to her role in media interviews, the speech she prepared for the meeting was full of the gunpowder of american-style partisanship.

after yellen emphasized the "importance of a resilient financial system," she immediately attacked trump without naming him.

after the subprime mortgage crisis, the united states established the financial stability board, which was led by the secretary of the treasury and attended by top leaders from u.s. financial regulatory agencies such as the federal reserve, office of the comptroller of the currency, securities and exchange commission, commodity futures trading commission, and federal deposit insurance corporation.

yellen said, during the previous administration(note: that is the trump administration), the power of the financial stability committee has been greatly weakened. by the time she takes over, the entire committee's staff is in single digits, and the treasury department's analytical team responsible for monitoring systemic risks has been disbanded.. during her tenure, she completed the reconstruction of this committee and acted decisively in the silicon valley bank incident to mitigate the risk of contagion of the liquidity crisis.

for this year's u.s. election, financial regulation is where the two candidates differ quite clearly. trump represents a major deregulation of wall street, having rolled back many banking restrictions in 2018 following the subprime mortgage crisis. although harris has not made clear her policies for the financial industry, the market expects that she will continue many of the biden administration's proposals, including stricter capital and liquidity requirements.

(shi zhengcheng of financial associated press)