③Yellen also publicly criticized the Trump administration for destabilizing American financial stability.

Securities Times news on September 27 (Editor Shi Zhengcheng), local time on Thursday, US Treasury Secretary Janet Yellen embarked on an intensive public speaking tour.

I believe in achieving a "soft landing"

First is the situation of the US economy. As the finance chief, Yellen emphatically emphasizes her bullish view that the US economy is moving towards a direction of "soft landing" and controlled inflation.

Yellen stated that indicators from various aspects such as the labor market, inflation, and economic growth all show that the US is moving towards a "soft landing". She also acknowledged that "risks are always present", for example, there is slightly more slack in the labor market than before.

The American Treasury Secretary also stated that the 'final mile' of the current deflationary big business includes housing costs. There are ample reasons to believe that rental prices will continue to decline, ultimately achieving the 2% inflation rate desired by the Federal Reserve. If the US economy continues on its current path, she believes that the Federal Reserve's policy interest rates will move closer to the neutral rate.

Yellen also emphasized that when it comes to the speed of interest rate cuts, you need to ask Powell.

However, the high interest rates of the Federal Reserve have led to a sudden increase in the pressure on the United States to repay interest on its national debt, which is indeed Yellen's business. She emphasized that in the future, the US government does need to take some deficit reduction measures to control the debt repayment pressure.

As the leading department of the Biden administration in external economic cooperation, Yellen also discussed the dynamics of geopolitical cooperation. She stated that cooperation with relevant countries is becoming closer, with constructive ways now found to discuss differences, and both sides are engaging in cooperation in some 'necessary areas.'

Surprisingly to the market, Yellen also voluntarily mentioned the issue of the value of the US dollar, emphasizing that it 'should be determined by the market,' but also adding 'it can be imagined that in extreme cases, intervention in the dollar might be necessary.'

Criticism of Trump.

It is worth noting that compared to her role in media interviews, the speech she prepared for the meeting is filled with the gunpowder of American-style political infighting.

After emphasizing the importance of a resilient financial system, Yellen then turned the conversation to criticize Trump indirectly.

After the subprime crisis, the United States established the Financial Stability Committee, led by the Secretary of the Treasury, with the heads of financial regulatory agencies such as the Federal Reserve, the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Federal Deposit Insurance Corporation attending collectively.

Yellen stated that during the previous administration (note: the Trump administration), the power of the FSOC was greatly weakened. When she took over, the entire committee had only single-digit staff, and the Treasury analytical team responsible for monitoring systemic risks had already been disbanded. During her tenure, she completed the reconstruction of the committee, took decisive action in the Silicon Valley Bank incident, and alleviated the risk of contagion in the liquidity crisis.

For this year's U.S. election, financial regulation is a significant point of difference between the two candidates. Trump represents a significant relaxation of regulation on Wall Street, having removed multiple restrictions on the banking industry following the subprime crisis in 2018. While Harris has not explicitly outlined financial industry policies, market expectations are that she will continue several proposals from the Biden administration, including stricter capital and liquidity requirements.

Editor/ping