Bessent believes the labor market is expected to break through the low hiring environment

Investing.com – U.S. Treasury Secretary Janet Yellen said on Friday that she is optimistic about the labor market breaking out of its current low hiring and low firing environment, and pointed to signs that future labor demand will be stronger.

Yellen stated during a speech at the Dallas Economic Club that last year, corporate spending on artificial intelligence data centers surged. She said, “Traditionally, a boom in capital expenditure is followed by a boom in the labor market.”

Yellen added that temporary staffing agencies reported increased profits and very strong demand. She noted, “Historically, this translates into long-term demand.”

The Treasury Secretary expressed some surprise at the Supreme Court’s ruling and added that disputes over refunds could be delayed for weeks, months, or even years.

Yellen also discussed the private credit sector, stating that the government’s responsibility is to ensure that the regulated system is not affected by private credit issues. She further added that, so far, private credit has played a positive role in the economy.

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