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Yellen says Fed can tame inflation without crushing labor market
Stock market will turn when Fed’s ‘hard landing’ hits: Hugh Johnson
Hugh Johnson Advisors chief economist Hugh Johnson and Meridian Equity Partners senior managing partner Jonathan Corpina discuss how investors should play Fed rate hikes on “The Claman Countdown.”
Treasury Secretary Janet Yellen expressed confidence on Thursday that the Federal Reserve can wrestle inflation under control without crushing the U.S. labor market, despite growing concerns about the economic outlook.
"I believe there is a path through this that can succeed in bringing down inflation while also maintaining a strong labor market," Yellen said at the Atlantic Festival in Washington. "And I very much hope that the Fed will be able to succeed in doing that."
Yellen made the comments one day after the Fed unanimously voted to lift the benchmark federal funds rate by 75 basis points for the third consecutive time as it tries to tame the hottest inflation in 40 years.
Although there are growing concerns that the central bank will tip the economy into a recession with higher rates, the former Fed chief said she believes the labor market will remain strong and that the unemployment rate will stay near a historic low.
FEDERAL RESERVE RAISES INTEREST RATES BY 75 BASIS POINTS FOR THIRD STRAIGHT MONTH