BENGALURU, Feb 24 (Reuters) – U.S. Treasury Secretary Janet Yellen said on Friday that U.S. inflation is slowing but there is more work to be done to bring it in line with the 2% annual target of Federal Reserve.
Yellen also told reporters on the sidelines of a G20 meeting of finance ministers and central bank governors near India’s tech hub Bengaluru that she still believes a “soft landing” without recession is possible because of a strong labor market and strong balance sheet in the US. sheets.
“Inflation will go down if you measure it on a 12-month basis, but still core inflation, which I think will fall more, remains higher than the 2% consensus,” he said, referring to the target Fed rate.
Echoing comments she made Thursday that the U.S. and global outlook is improving despite continued pressure from the war in Ukraine, Yellen said the U.S. economy is “basically in good shape .”
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“Employment, you know, continues to increase. Households are doing well. You know, we don’t have balance sheet problems of the type we had before the (2008-2009) financial crisis in world,” Yellen said referring to high debt levels and crashing home prices during that time.
Reporting by David Lawder. Editing by Jane Merriman
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