Quiver Quantitative - U.S. Treasury Secretary, Janet Yellen, expressed strong optimism about the trajectory of the U.S. economy during her speech at a Fortune CEO event. Highlighting key indicators, she mentioned the diminishing inflation in the short-term against the backdrop of a robust labor market. Her medium-term perspective revolves around the country's ambitious investment strategy aimed at fortifying the economy and enhancing its productive capacity. Yellen pointed out that the U.S. GDP continues to grow at a rate surpassing the Federal Reserve's benchmark "potential" growth rate of 1.8%, with a promising 2.4% annualized growth in the last quarter.
In addition to the economic insights, Yellen lauded the recent Congressional agreement that successfully thwarted a potential government shutdown, an event she previously identified as a risk for an economic downturn. Projecting forward, she anticipates a stabilization of interest rates in the medium-term, returning them to more conventional levels.
Yellen touched upon the rapid advancements in artificial intelligence, emphasizing its transformative potential on productivity rates. However, she also acknowledged the current over-reliance of the U.S. on China, particularly in critical sectors integral to the nation's interests. She advocated for reducing these dependencies, emphasizing a balanced approach that doesn't entirely sever ties.
Concluding her remarks, she referenced her visit to China in July, indicative of the Biden administration's ongoing efforts to maintain open communication channels with the Asian powerhouse. As various officials have visited China recently, the emphasis is on fostering diplomacy and dialogue.
This article was originally published on Quiver Quantitative