U.S. Treasury Secretary Janet Yellen said on Friday that inflation is coming down measured on a 12-month basis, but core inflation remains higher than is consistent with the 2% target. She added, however, that she thinks the core inflation will fall further.
Also, Yellen said that a soft landing is a possible outcome due to a strong labor market and strong U.S. balance sheets.
According to her, the U.S. economy is fundamentally in good shape. "Employment, you know, continues to increase. Households are in good shape. You know, we don't have balance sheet problems of the type that we had prior to the (2008-2009) global financial crisis," Yellen noted.