US Treasury Secretary Janet Yellen said on Sunday that a recession was not “inevitable” in the United States, days after another hike in key rates by the US central bank raised fears of the prospect of an economic contraction. .
I don’t think a recession is inevitablesaid Ms. Yellen on ABC News, conceding however to expect until the economy slows down as part of a transition to a slow and stable growth.
The hypothesis of a recession in the United States is gaining momentum after the historic decision on Wednesday by the central bank (Fed) to raise its key rates sharply, in an attempt to curb galloping inflation.
The president (of the Fed) Powell said his goal was to reduce inflation while maintaining a strong job market. It will take skill and luck, but I believe it is possible.the Treasury Secretary said, calling the level of inflation aunacceptable.
It is President Biden’s priority to reduce itunderlined Ms. Yellen.
The US economy has already slowed with a 1.5% contraction in GDP in the first quarter, and the start of the second quarter seems to show that the slowdown is continuing in certain sectors such as manufacturing, real estate and retail sales.
A survey by the Conference Board institute recently revealed that 76% of the 750 bosses questioned considered either that a recession was looming on the horizon, or that it was already effective.
But the Treasury Secretary sees reason to hope that a recession does not materialize, especially with consumer spending remaining very strongaccording to her.
It is clear that most consumers – even lower income households – continue to have savings that can serve as a buffer and will allow them to continue spending.argued Janet Yellen on ABC News.
France Media Agency
Source: Radio-Canada
