Janet Yellen now sees a chance the US economy will avoid a recession as inflation is coming down

• Janet Yellen has turned more upbeat about the the US economy in view of the tight labor market. 
• It could see a "soft landing", the Treasury Secretary said, after previously flagging recession risks. 
• "The economy is fundamentally in good shape, and inflation is coming down," she said Friday, per Bloomberg.  

Treasury Secretary Janet Yellen has turned more optimistic about the US economy and the Federal Reserve's ability to avoid tipping it into recession.

Investors have fretted over the impact of the US central bank's aggressive interest-rate hikes. But Yellen suggested it will pull off a "soft landing" and bring down inflation without sparking a severe and prolonged downturn.