On the 26th, Treasury Secretary Janet Yellen stated that the U.S. economy is on a soft landing path, and efforts to reduce inflation are in their final stages.

In an interview aired that day on CNBC, Secretary Yellen said, "I have always believed that there is a path for the U.S. economy to achieve a soft landing and that it is possible to reduce inflation while maintaining a strong labor market. The data now suggests that this is happening."

While acknowledging that "inflation remains a top priority for the Biden administration," Yellen emphasized that inflation rates have significantly decreased, and wages are rising.

She also mentioned that as part of the final stage in taming inflation, housing costs, including home prices and rents, are being reduced.

Yellen further forecasted, based on recent comments from Federal Reserve officials, that the U.S. benchmark interest rate, which was recently cut by 0.5 percentage points (to 4.75�C5.0%), will continue to decrease toward a neutral level.

A neutral interest rate refers to a level that allows the economy to grow at its potential rate without accelerating inflation. In addition, Yellen stressed the importance of reducing the federal deficit to keep national debt interest costs manageable.

Regarding China's push to introduce a central bank digital currency, Yellen noted, "We are exploring alternative approaches."

On U.S.-China relations, Yellen remarked, "We are cooperating in essential areas," and evaluated that the relationship with China has become closer, with constructive ways found to discuss differences.

[Yonhap News]