WASHINGTON, June 7 (Reuters) – The U.S. economy is strong amid robust consumer spending but some areas are slowing down, U.S. Treasury Secretary Janet Yellen said on Wednesday, adding that she expects continued progress in bringing inflation down over the next two years with a strong labor market.
Yellen, in a CNBC interview, also said that while banks may struggle with commercial real estate and face some consolidation, there is ample liquidity in the system and banks should generally be able to withstand any strain.
Yellen said that inflation can subside while maintaining a strong labor market, with unemployment in the 4% range, up slightly from the 3.7% reading in May.
“We’ve always thought an unemployment rate with four as the first digit is a very strong labor market,” Yellen said. “Clearly, Americans feel good about their job prospects. They’re finding work quickly.”
She said the economy has slowed somewhat, easing pressures in the labor market, but “we still have a very healthy labor market, wage gains are significant.”
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Source: www.reuters.com
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