US Treasury Secretary Janet Yellen stated that the likelihood of the US economy entering a recession is weakening.
Treasury Secretary Janet Yellen stated that the risk of the US entering a recession has decreased.
In an interview with Bloomberg, Yellen pointed to the labor market staying strong and the recent drop in inflation to support her view that the likelihood of a recession is falling. Yellen, on the other hand, added that there is a need to slow down consumption expenditures in the fight against inflation.
“I wouldn’t say it’s not a risk as the Fed tightens its monetary policy,” he said, referring to the Fed’s 10 rate hikes since March 2022, and potentially more to come.
Yellen, on the other hand, added that there is a need to slow down consumption expenditures in the fight against inflation. Pointing out that the core inflation is still at high levels, Yellen pointed out that the inflation decreased from 9 percent to 4 percent and said that with the correction in the housing market, further declines are on the way.
Yellen’s latest assessment of the US economy comes after May’s jobs report showed job gains that beat the forecasts of all economists. Housing construction and retail sales also showed surprising resilience to the Fed’s tough monetary tightening last month.