US Treasury Secretary Janet Yellen believes that the US economy is doing very well and that the financial markets have not shown signs of instability despite the volatility in the stock and bond markets.
In an interview with CNBC, Yellen said that the US jobs report indicates that the economy is very resilient, but that does not preclude that the economy has slowed, which is something to be expected after the strong recovery from the Corona pandemic.
Despite inflation rising above the 2% target, Yellen believes prices can be curbed without hurting the labor market.
The former Fed chair emphasized that household balance sheets are strong, and corporate debt is at manageable levels in the face of rising interest rates.
Yellen ruled out any signs of financial instability in America, noting that most of the fluctuations occurred as a result of external shocks such as the lack of energy due to the Russian-Ukrainian crisis, and the recent OPEC + decision to reduce production by about two million barrels per day.
“While there is some concern about liquidity in the markets, I don’t think we see anything rising to the level of serious concern.”