Yellen: I'm very optimistic about the US economic outlook

US Treasury Secretary Janet Yellen stated that inflation has decreased in the short term in the context of an extremely strong labor market, and said that she is “very optimistic” about the outlook for the US economy and that interest rates may remain high for a longer time in order to control inflation. US Treasury Secretary Janet Yellen made assessments on the economic agenda at an event organized by Fortune. Stating that inflation has decreased in the short term in the context of an extremely strong labor market, Yellen said, “I am very optimistic about the US economic outlook.” Emphasizing the importance of a sustainable fiscal policy, Yellen stated that the current debt level is at a manageable level. Noting that high long-term interest rates could pose a threat, Yellen said, “Our forecast assumes that interest rates will rise towards more normal levels, but especially in the last few months we have seen a quite significant increase not only in 10-year nominal interest rates, but also in real interest rates.” “Inflation may remain high for a longer time” Yellen stated that interest rates may remain high for a longer time in order to control inflation, but that interest rates will return to more normal levels in the medium term. Janet Yellen also reported that it is possible that long-term interest rates are higher than expected. Noting that the US is overly dependent on China in some critical areas, Yellen stated that the country needs to eliminate some of these risks without completely breaking away from China. When asked about developments in artificial intelligence, Yellen said that progress in this area is "incredibly fast" and can make a significant difference in efficiency.