Yellen: recession is not inevitable
Treasury Secretary Janet Yellen said that U.S. economic growth is slowing, adding, however, that while the risk of recession exists, it is not inevitable.
Yellen said that strong U.S. employment and consumer spending show that the U.S. economy is not currently in recession.
U.S. employment remained strong in June, adding 372,000 jobs and keeping the unemployment rate at 3.6 percent. It was the fourth consecutive month that the number of jobs increased by more than 350,000.
“This is not an economy in recession,” said Yellen, who previously headed the Federal Reserve. – But we’re in a transitional period where growth is slowing, and that’s necessary and appropriate.”
Still, last week’s data point to a softening labor market, with the number of new jobless claims at its highest level in eight months.
Yellen said that inflation is “too high,” but that the Fed’s recent rate hikes have helped curb skyrocketing prices.
In addition, the Joe Biden administration is selling oil from the Strategic Petroleum Reserve, which Yellen said has already helped lower gasoline prices.