Treasury Secretary Janet Yellen sought to reassure the public on Saturday that the U.S. economy remains strong, despite a series of recent dismal jobs reports that have raised concerns among investors and weighed on the stock market.

“We are seeing a slowdown in hiring and job openings, but no significant large layoffs,” Yellen said at the Texas Tribune Festival in Austin. “I am closely monitoring the potential risks to employment, but what we are seeing, and hopefully will continue to see, is a stable and sustainable economy.”

Janet Yellen

Yellen said job growth had slowed from the “hiring frenzy” as the US reopened from the Covid-19 pandemic, but asserted that the economy was far along in its recovery and was now “operating at full employment.”

Secretary Yellen's comments came after the US Bureau of Labor Statistics released its August jobs report with figures that were lower than expected.

Nonfarm payrolls, a key indicator of U.S. job creation, increased by just 142,000 in August, below Dow Jones' forecast of 161,000, according to the report. The news fueled concerns about a labor market slowdown, sending the S&P 500 index lower on Friday, ending its worst trading week since March 2023.

Still, the unemployment rate edged down to 4.2 percent, and job growth in August was still higher than in July. Stocks also sold off sharply early last month after a weak July jobs report stoked fears of a U.S. recession.

Yellen tried to ease concerns about the state of the economy on Saturday: “I don’t see any danger signs that warrant concern.”

Recent jobs data has added to concerns about the Federal Reserve’s ability to successfully execute a “soft landing” — raising interest rates to control inflation, then cutting them before the economy slips into recession. The Fed is expected to cut rates this month.

Yellen expressed optimism that the US was on track to achieve that goal: “It’s remarkable that we’ve been able to reduce inflation so dramatically. This is what many people call a ‘soft landing,’” she said.


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