US Treasury Secretary Janet Yellen forecasts a 'very good' year for economy in 2024

US Treasury Secretary Janet Yellen forecasts a 'very good' year for economy in 2024

US Treasury Secretary Janet Yellen speaks at a news conference

US Treasury Secretary Janet Yellen has expressed optimism about the economic prospects for 2024, citing increased consumer confidence and a positive financial outlook.

"I think 2024 is going to be a very good economic year. That said, there are always risks," Yellen told ABC News Correspondent Elizabeth Schulze in an interview in Chicago.

Yellen highlighted the confidence among consumers and households in their financial situations, emphasising their willingness to spend.

According to her, this spending behaviour not only creates jobs but also fosters economic growth, providing people with the income needed to sustain this positive momentum.

Yellen's comments followed a robust GDP report, defying earlier predictions of a recession.

The Biden administration aims to leverage this unexpected economic strength to counter prevailing pessimistic sentiments among voters in the lead-up to the 2024 election.

Recent surveys, including the University of Michigan's consumer sentiment index, indicated a significant improvement in people's outlook on the economy.

Yellen sees this shift as a promising sign, potentially influencing voters' perceptions of the economic landscape.

Actively engaging in the political discourse, Yellen and President Joe Biden visited the Midwest to underscore the administration's successes in areas such as infrastructure, manufacturing, and clean energy.

Yellen's speech in Chicago highlighted policy achievements, while Biden visited a key swing state, Wisconsin, to showcase a bridge construction project funded by his legislation.

In an unusual move for Yellen, she directly slammed former president Donald Trump, contrasting his policies with those of the current administration.

Yellen emphasised the success of Biden's investments in steering the country away from post-pandemic economic hardships and criticised Trump's tax cut legislation, which, according to her, primarily benefited wealthy corporations rather than the middle class.

While acknowledging the administration's achievements, Yellen recognised the ongoing challenges, particularly concerning the middle class.

High costs of child care, food, and housing were cited as areas needing attention.

Yellen pledged the administration's commitment to addressing these issues to further boost the middle class.

Despite acknowledging rising costs, Yellen emphasised that wages are increasing more rapidly than prices. She reassured Americans that, despite challenges, their financial situations are improving. Additionally, Yellen acknowledged a generational shift, noting that achieving the American dream is now perceived as more challenging compared to her own upbringing.

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Drawing attention to the changing sentiment about the American dream, Yellen reflected on a recent poll showing a decline from 50 per cent to 27 per cent in the belief that the American dream still holds. She highlighted disparities in economic progress across the country, emphasising the need for change to revive the belief that the American dream is alive and well.

(With inputs from agencies)