Last Saturday, US Treasury Secretary Yellen attempted to calm the public by stating that the US economy remains strong, despite a series of weak jobs reports causing concern among investors and putting pressure on the US stock market.

Yellen, speaking at the Texas Tribune Festival in Austin, stated, 'We have seen a decrease in the frenzy of hiring and job vacancies, but we have not seen any significant layoffs. I am currently concerned about the downward risks in employment, but I believe what we are seeing now and what we hope to continue seeing is a good and stable economy.'

Yellen stated that compared to the 'hiring frenzy' seen in the US when it reopened after the COVID-19 pandemic, job growth has slowed, but the economy is 'deep into recovery' and 'basically at full employment.'

The day before Yellen made the above remarks, the US Department of Labor Statistics released another month of employment data that was lower than expected. The non-farm employment figure, which measures the situation of job creation in the US, increased by 0.142 million people in August, lower than the Dow Jones forecast of 0.161 million people. This has once again sparked concerns about a slowdown in the labor market.$S&P 500 Index (.SPX.US)$It fell last Friday, marking the worst week since March 2023.

However, the unemployment rate slightly decreased to 4.2%, and the job growth in August was higher than in July. At the beginning of last month, after weak economic reports in July raised concerns about a US economic recession, the stock market experienced a significant sell-off.

Yellen attempted to ease people's anxiousness about the economic situation last Saturday, stating, 'I do not see flashing red lights.' The job data has raised concerns about whether the Federal Reserve can achieve a so-called 'soft landing,' meaning raising interest rates to control inflation and then implementing rate cuts before the economy enters a recession. It is widely expected that the Federal Reserve will lower interest rates this month.

Yellen stated that the US is on such a path, saying, 'It's really surprising that we can bring down the inflation rate meaningfully. This is what most people call a soft landing.'

When asked if she would step down when the new government takes office in January next year, or continue to serve or take on a new administrative position, Yellen said, 'I might step down, but... we'll see.'

Amidst the intense presidential race between Vice President Harris and former President Trump, this is the closest Yellen, who is 78 years old, has come to announcing her future plans. Yellen is the first woman to serve as Secretary of the Treasury, Chair of the Federal Reserve, and Director of the White House National Economic Council.

According to reports, Yellen said at this event that she still has a lot of work to do in the coming months, including possible meetings with Chinese officials.

Editor/Rocky