US Treasury Secretary Janet Yellen: The US economy does not need further tightening

US Treasury Secretary Janet Yellen said in a statement on Thursday that she believes the US economy does not need further monetary policy tightening to eliminate inflationary expectations and is on track to achieve a "soft landing" with strong employment.

Speaking to reporters after a speech at a lithium processing facility in North Carolina, Yellen said that in the past, the Fed sometimes had to tighten monetary policy too much to prevent inflation from becoming so entrenched that it would lead to a recession in the economy.

"We don't need that right now. I believe the signs are very good that we will achieve this soft landing, with unemployment more or less stabilizing and growth slowing to a sustainable level," Yellen said.

She stated that "inflation has now fallen quite a bit" as the high prices of some goods, such as eggs, have returned to pre-pandemic levels. "And now wage increases are really translating into more real income. So I hope Americans will gradually see that things are getting better," Yellen added.