WASHINGTON, June 30 — The US economy "has proven more resilient” than anticipated despite recession forecasts, Treasury Secretary Janet Yellen is due to say today, expressing hope the country can lower inflation while maintaining labour market strength.

Her comments come shortly after revised economic data showed the world’s biggest economy expanded significantly more than estimated in the first quarter, supported by consumer spending.

Meanwhile, inflation has been cooling on an annual basis.

"I continue to believe that there is a path to reducing inflation while maintaining a healthy labour market,” Yellen said, in prepared remarks to be delivered at an event in New Orleans.

"Without downplaying the significant risks ahead, the evidence that we’ve seen so far suggests that we are on that path,” she added.

Business leaders have also "increasingly voiced confidence” in the US economy, according to her remarks.

Labour market strength and strong household and business balance sheets, she added, should help support the economy going forward even if activity eases as inflation comes down.

"While there are parts of our economy that are slowing down, households are spending at a robust pace and businesses continue to invest,” Yellen said.

With data signalling the US economy has been stronger than expected, analysts said some are now questioning if a recession is inevitable for the country or if a "soft landing” is possible.

This refers to a scenario where inflation comes back down to policymakers’ two per cent target without a major downturn.

In her prepared speech, Yellen also lauded the achievements of President Joe Biden’s administration, including efforts to boost infrastructure investment and the country’s semiconductor sector.

The president’s agenda, dubbed Bidenomics, comes as he seeks re-election in 2024. — AFP