In response to the weaker-than-expected initial estimate for U.S. gross domestic product from January through March, Yellen expressed optimism about the overall performance of the U.S. economy. The GDP growth was below economists’ expectations at 2.4%, and less than half the pace in the fourth quarter of 2023 due to drags from trade and private inventories.
Despite these challenges, Yellen remained upbeat about the state of the U.S. economy. She emphasized that while there was a concerning increase in inflation, it did not necessarily call for an increase in unemployment or cooling measures in other areas of the economy to bring inflation back to the Federal Reserve’s 2% target.
The report revealed that the personal consumption expenditures price index excluding food and energy rose at a faster pace of 3.7% annually compared to 2.0% in the previous quarter, adding to Yellen’s concerns about inflationary pressures on the economy. However, she played down this surge and indicated that it did not require drastic measures in response to maintain stability.
Overall, Yellen’s comments reflect a cautious yet positive outlook on the state of the U.S. economy amidst ongoing challenges related to trade, private inventories, and inflationary pressures.
In summary, despite weak GDP growth and rising inflation rates, Yellen remains optimistic about the overall performance of the U.S. economy, indicating that drastic measures may not be necessary to maintain stability and meet inflationary targets.
However, Yellen also acknowledged that ongoing challenges related to trade, private inventories, and inflationary pressures must be addressed if we want our country’s economy continues performing well in future quarters.
Thusly said Janet Yellen regarding her view on US Economy’s recent performance Report which shows slower than expected GDP growth rate and rising inflation rates that is causing some concern among experts but still she expressed hopefulness for future prospects with appropriate actions taken now by authorities as per her statement “We need appropriate actions taken now by authorities”.