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In an exclusive interview with Yahoo Finance on Monday, Treasury Secretary Janet Yellen expressed optimism about inflation, projecting it would reach the Federal Reserve's 2% target by 2025. To provide further insight into this economic outlook, Bank of America Securities managing director and chief US economist Michael Gapen joins Morning Brief.
Gapen agrees with Secretary Yellen's assessment but offers a slightly more conservative timeline. He suggests that the 2% inflation target "may be achieved in 2026, not 2025." However, Gapen anticipates a downward trend that could pave the way "for a gradual rate cut cycle later this year," cautioning that the process might unfold "a little more slowly than Secretary Yellen suggested."
Addressing the broader economic picture, Gapen told Yahoo Finance, "Obviously nothing is assured, of course, but we do think that every quarter that goes by... every set of data we receive, does increase the probability that the US is achieving a soft landing."
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Watch Yahoo Finance's full interview with US Secretary of the Treasury Janet Yellen here.
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This post was written by Angel Smith