‘Firing On All Cylinders!’ CNN Anchor Rizzes Up Economy To Biden Treasury Secretary After Big Jobs Report

CNN anchor John Berman gushed that the economy is “firing on all cylinders!” as he teed up an interview with Biden Treasury Secretary Janet Yellen to discuss the latest boffo jobs report.

Friday morning saw the release of a new jobs report from the Bureau of Labor Statistics that showed better-than-expected job creation of 216,000 in December and an unemployment rate that remained steady and low at 3.7 percent:

Total nonfarm payroll employment increased by 216,000 in December, and the unemployment rate was unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in government, health care, social assistance, and construction, while transportation and warehousing lost jobs.

On Friday’s edition of CNN News Central, Berman gushed over a number of economic indicators, and opened his interview with Yellen by asking “Why do people keep underestimating this economy?” Here is their exchange:

JOHN BERMAN: So the U.S. economy running on all cylinders. The jobs report, released just a short time ago, shows 216,000 jobs added in December, beating expectations. The unemployment rate unchanged. Very, very low at 3.7%.

Joining me now is Treasury Secretary Janet Yellen. Madam Secretary, thank you so much for being with us. We keep saying “Beating expectations! Beating expectations!”.

Why do people keep underestimating this economy?

SEC. JANET YELLEN; Well, there has been a lot of pessimism about the economy, the truly proven unwarranted. A year ago, most forecasters believe we would fall into a recession. Obviously that hasn’t happened. We have a good, strong labor market. Today’s news as as you mentioned, showed that the unemployment rate remains low. And we added 216,000 jobs.

Now, the pace of job creation over the last three months averages 165. That’s down from a year ago, when the economy was still recovering from the pandemic. But it’s something that’s expected and desirable consistent with an economy that is now recovered in is transition to stable and steady growth. So the labor market continues to fire on all cylinders.

Other reports this week, a low level of initial claims for unemployment insurance. Job openings remain at healthy levels. And importantly, inflation is come way down. Over the last six months the measure that the fed watches most has been running right at their target of 2%. And Americans are beginning to feel that. And some surveys are suggesting that they’re becoming more optimistic, which is something that’s really good to see because price increases have slowed substantially.

Some important prices have fallen noticeably. And the majority of gas stations around the country. A gallon of gas is now selling for under $3 a barrel. Used car prices have come down. You know, there’s more work to do on the inflation front. Some important prices, food prices and apartment rentals remain high, but we’re really making progress. President Biden’s approach has been to do everything he can to spur that spur that improvement keeping energy prices down creating good jobs through and invest in America agenda. And wages are increasing. Today we saw average hourly earnings up 4.1%. So wage increases are running over price increases now. American workers are getting ahead. And the prices for the middle middle income families is very noticeable.

JOHN BERMAN: We have that chart up on the screen so people can see, yes, wage growth is outpacing inflation. And as you noted, some surveys are beginning to show that consumers are feeling a little better about the economy. But that’s from a really low point because they felt lousy about it. And poll after poll after poll. So what will it take, do you think, for inflation not to be a story anymore?

SEC. JANET YELLEN; Well you know, we had a period the pandemic was difficult and we had a period in which prices rose a great deal in the short time. So I think we need to see a sustained period of low inflation with wages growing, as you showed in the graph, more rapidly than inflation, for people to feel good about their future prospects. As you mentioned, we’re beginning to see that in surveys. I believe if this is maintained over the next year, as I fully hope and expect, it will be that Americans will feel good their spending in ways that suggests they’re happy with their financial circumstances. We’re seeing a huge number of new businesses being formed. That and investment in American businesses that suggest confidence in the future of the economy. I think those are all good. Signs is here. It is very rare to bring down inflation as much as we have without seeing a weakening in the job market, but we have 23 months in a row, unemployment under 40%. Haven’t seen that in 50 years.

JOHN BERMAN: So the soft landing. Did it happen?

SEC. JANET YELLEN; What we’re seeing now, I think we can describe as a soft landing. And my hope is that it will, it will continue.

JOHN BERMAN: So you did it!

SEC. JANET YELLEN; Well the American people did it. The American people go to work every day, participate in the labor market, form new businesses. But President Biden has tried to create incentives to give Americans the tools they need to help this economy grow. We have three huge pieces of legislation investing in American infrastructure spurring private investment in semiconductors and in clean energy. And that’s really sparking a growth, especially in manufacturing jobs.

Watch above via CNN News Central.

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