In this engaging conversation, US Treasury Secretary Janet Yellen shares her insights on the current state of the economy and the intricate dynamics of US-China relations. She discusses the challenges of balancing inflation control with job creation, especially amid recent reports. Yellen also highlights new IRS tax processing improvements and the importance of securing US steel companies amid foreign investments. Expect valuable perspectives on taxation, economic growth, and the need for legislative support in critical areas like affordable housing and healthcare.
Janet Yellen highlighted the current U.S. labor market's resilience despite recent job creation slowdowns and evolving post-pandemic dynamics.
Yellen emphasized the importance of diplomatic engagement in U.S.-China relations to collaboratively address global economic challenges.
Deep dives
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Economic Insights from Janet Yellen
Treasury Secretary Janet Yellen discussed the recent slowdown in job creation in the U.S., noting that August's report indicated the economy added only 142,000 jobs, indicating potential recession risks. Despite the downturn, she emphasized that an unemployment rate above 3.4% is typical and signifies a full employment economy, with ongoing labor market disruptions following the pandemic. Yellen views the current economic state as a 'soft landing,' meaning the Federal Reserve's objectives of controlling inflation without triggering a recession may be progressing as intended. Nonetheless, Yellen remains alert to potential risks, particularly concerns surrounding rising prices for low-income households.
Diplomatic Approaches to Global Challenges
Yellen has taken a diplomatic approach in her dealings with international counterparts, particularly regarding U.S.-China relations, emphasizing the importance of collaboration to tackle global issues. Despite challenges, she believes that it's crucial to rebuild alliances and engage with other countries for effective problem-solving, especially on issues such as climate change. Yellen expressed her desire for continuous dialogue, reflecting on her previous visits and the importance of being able to communicate tough messages diplomatically. Her insights indicate a broader strategy of cultivating cooperative relationships to foster mutual understanding and address complex international economic challenges.
On today’s podcast, host David Gura speaks to US Treasury Secretary Janet Yellen about everything from the health of the economy to negotiating with China. He also accompanies her on a trip to an IRS processing facility in Texas to talk about tax cheats and what to do about them.