Janet Yellen Declares U.S. Economy Reached ‘Soft Landing’ Scenario

Janet Yellen, U.S. Treasury Secretary and former Chairman of the U.S. Federal Reserve, believes that the recent improvements in the American economy show that the country has achieved a soft landing. For Yellen, the recent low figures of inflation and the strength of the labor market are signs of this scenario.

Signs of a Soft Landing

U.S. Treasury Secretary Janet Yellen believes that the U.S. economy has improved during the last six months, declaring that she feels that what they are seeing now can be described as a soft landing, which happens when the measures taken by the Federal Reserve, such as interest rate hikes, slow down inflation without causing a recession.

According to Yellen, this is what the Federal Reserve has achieved, taking the latest labor market and inflation numbers into account. Supporting her statements, Yellen explained that the labor market hadn't slowed down, with 23 months in a row with the unemployment percentage under 4%, something not seen in 50 years, and 216,000 jobs added in December.

A Positive Path

In an X post, Yellen stated:

"The American people, workers, and businesses have helped put us on a path to a soft landing. The President's economic agenda is giving them the tools they need to grow the economy, including historic investments in infrastructure, clean technology, and semiconductors."

Yellen also remarked on the advances that the economic apparatus of the U.S. had reached, achieving a steep inflationary decline during the last six months. However, she acknowledged that there is more to do on the inflationary front concerning housing and food prices, which have remained high. Additionally, she stated that polls have started to show that Americans are becoming more optimistic about their future.

Yellen's recent remarks are consistent with her statements from December when she stressed that, even when there was always a recession risk, she didn't believe it was particularly high at that moment, explaining that people would start feeling better about the economy gradually over time.

What do you think about Janet Yellen's statements on reaching a soft landing scenario? Tell us in the comments section below.

Frequently Asked Questions

What does a gold IRA look like?

For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.

You can purchase gold bullion coins in physical form at any moment. You don't have a retirement date to invest in gold.

An IRA allows you to keep your gold forever. Your gold assets will not be subjected tax upon your death.

Your heirs can inherit your gold and avoid capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.

To open a gold IRA, you will first need to create an individual retirement account (IRA). After you have done this, an IRA custodian will be assigned to you. This company acts as a mediator between you, the IRS.

Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reporting.

After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit is $1,000. You'll get a higher rate of interest if you deposit more.

You will pay taxes when you withdraw your gold from your IRA. You will be liable for income taxes and penalties if you take the entire amount.

If you only take out a very small percentage of your income, you may not need to pay tax. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.

It's best not to take out more 50% of your total IRA investments each year. You'll be facing severe financial consequences if you do.

Is it a good idea to open a Precious Metal IRA

The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. It is impossible to get back money if you lose your investment. All your investments can be lost due to theft, fire or flood.

This type of loss can be avoided by investing in physical silver and gold coins. These items have been around thousands of years and are irreplaceable. You would probably get more if you sold them today than you paid when they were first created.

Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.

If you decide to open an account, remember that you won't see any returns until after you retire. Remember the future.

Should you Invest In Gold For Retirement?

The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. You can invest in both options if you aren't sure which option is best for you.

Not only is it a safe investment but gold can also provide potential returns. Retirees will find it an attractive investment.

Most investments have fixed returns, but gold's volatility is what makes it unique. Because of this, gold's value can fluctuate over time.

However, this does not mean that gold should be avoided. It is important to consider the fluctuations when planning your portfolio.

Another advantage of gold is its tangible nature. Gold is much easier to store than bonds and stocks. It is also easily portable.

Your gold will always be accessible as long you keep it in a safe place. Plus, there are no storage fees associated with holding physical gold.

Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.

It's also a good idea to have a portion your savings invested in something which isn't losing value. When the stock market drops, gold usually rises instead.

Another advantage to investing in gold is the ability to sell it whenever you wish. As with stocks, your position can be liquidated whenever you require cash. It doesn't matter if you are retiring.

If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.

Don't purchase too much at once. Start with a few ounces. You can add more as you need.

It's not about getting rich fast. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.

Even though gold is not the best investment, it could be an excellent addition to any retirement plan.

Statistics

The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
You can only purchase gold bars at least 99.5% purity. (forbes.com)

External Links

How To

How to hold physical gold in an IRA

The most obvious way to invest in gold is by buying shares from companies producing gold. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. Even if they do survive, there is still the possibility of losing money to fluctuating gold prices.

Another option is to purchase physical gold. You will need to either open an online or bank account or simply buy gold from a reliable seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's also easier to see how much gold you've got stored. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. There's also less chance of theft than investing in stocks.

However, there are some disadvantages too. Bank interest rates and investment funds won't help you. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. The taxman might also ask you questions about where your gold is located.

Visit BullionVault.com to find out more about gold buying in an IRA.

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By: Sergio Goschenko
Title: Janet Yellen Declares U.S. Economy Reached ‘Soft Landing' Scenario
Sourced From: news.bitcoin.com/us-treasury-secretary-janet-yellen-declares-soft-landing-reached-americans-recovering-optimism/
Published Date: Mon, 08 Jan 2024 06:30:30 +0000

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