U.S. Treasury Secretary Yellen and Bernanke project a "soft landing" for the economy, with lower inflation and a strong labor market.

U.S. Treasury Secretary Janet Yellen and former Fed Chair Ben Bernanke believe the economy is likely to avoid a recession, citing a "soft landing" where inflation is reduced while maintaining a strong labor market. Recent data shows a 3% annualized growth in Q2 and declining unemployment claims. Yellen emphasized the importance of reducing the federal deficit and noted that housing costs are expected to decrease, aiding inflation control.