- Treasury Secretary Janet Yellen expresses optimism about the economy, stating no recession expected for 2024 election.
- Yellen highlights consumers’ increasing confidence in finances and overall economic outlook.
- Yellen criticizes Trump’s tax cut legislation, while acknowledging work still needed to address high costs and revive the American dream.
Additional Coverage:
Treasury Secretary Janet Yellen expressed optimism about the economy in the upcoming 2024 election, stating that she sees no reason for a recession this year. In an exclusive interview with ABC News, Yellen highlighted consumers’ increasing confidence in their finances and the overall economic outlook, leading to job creation, growth, and increased spending. She cited the recent GDP report, which revealed better-than-expected economic growth, as evidence of a strong economy. The Biden administration hopes to use this positive economic picture to change voters’ pessimistic views ahead of the election.
Yellen pointed to recent surveys that show a significant improvement in consumer sentiment, with the consumer sentiment index from the University of Michigan reaching its highest level since July 2021. Capitalizing on this economic optimism, both Yellen and President Biden visited the Midwest and talked about the administration’s policy successes in areas like infrastructure, manufacturing, and clean energy. Yellen emphasized that these investments have helped restore the economy after the pandemic, taking a veiled swipe at former President Donald Trump, whom she claimed did not do enough for the middle class.
Yellen criticized Trump’s tax cut legislation, stating that it mainly benefited wealthy corporations while resulting in trillions of dollars in additional deficits. She highlighted that the tax cuts did nothing to alleviate the struggles of the middle class. However, Yellen also acknowledged that there is still work to be done to address the high costs of child care, food, and housing, which impact people’s sentiment. She emphasized that wages are rising faster than prices, and Americans are witnessing improvements in their financial situations.
In discussing the American dream, Yellen noted that only 27% of respondents in a recent poll still believe in its existence, a significant decline from 50% in 2010. She recognized that achieving the American dream has become more challenging and that there are parts of the country that have not experienced significant economic progress. Yellen believes that to restore faith in the American dream, changes need to be made to ensure economic progress reaches all areas of the country.