Former U.S. Treasury Secretary Summers said on Thursday that the U.S. still has a long way to go to avoid an economic downturn as policymakers battle inflation, but the chances of doing so are increasing.
Summers told Bloomberg Television that today’s August U.S. jobs report “matches a very optimistic scenario,” adding, “The report contains all the elements that could have been a wake-up call. But no alarm bells were rung,” he continued.
U.S. nonfarm payrolls rose by 187,000 in August from the previous month, and the average number of hours worked per week also increased. Summers said both suggested the economy was still “strong.” Meanwhile, average hourly wages grew at their slowest since early last year, and new additions to the labor force are helping to rectify a stark labor imbalance.
“It was a good performance,” he said. “I still think the road to a soft landing is very bumpy.
Looking ahead, he said it was important to keep an eye on the possibility that labor activity would put pressure on wages.
Original title:Summers Says Job Report Is a Step Down Road to US Soft Landing
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2023-09-01 17:46:00
