June 7, 2023

Dubai Week

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US Treasury Secretary: The recession is not "inevitable", it needs "luck" to reduce inflation

US Treasury Secretary: The recession is not “inevitable”, it needs “luck” to reduce inflation

U.S. Treasury Secretary Janet Yellen said on Sunday that the recession in the United States was “inevitable”, raising fears of a recession just days after the US Federal Reserve raised key interest rates.

“I do not think a recession is inevitable,” Yellen told ABC News, but he expected the “economy to slow down” as it transitioned to “slow and sustainable growth.”

The hypothesis of a recession in the United States has become more widespread since the Federal Reserve made a historic decision on Wednesday to significantly boost its core interest in controlling inflation.

“Federal Reserve Chairman Jerome Powell has stated that his goal is to reduce inflation while maintaining a strong job market,” he added. It will take skill and luck, but I think it is possible, “he said, describing the inflation rate as” acceptable “.

“President (Joe) Biden’s priority is to reduce inflation,” Yellen stressed.

The U.S. economy slowed to 1.5 percent in the first quarter. The start of the second quarter shows that the recession will continue in some sectors, such as manufacturing, real estate and retail.

In a survey conducted by the “Converse Board” Institute, 76 percent of the 750 employers interviewed said they thought the recession was on the horizon or that it had already begun.

But the Secretary of the Treasury believed that the recession would not translate into real form, especially since consumer spending was still “very strong”.

“It is clear that most consumers, even those on low incomes, have been able to save money, which is a lever for them, allowing them to continue to spend,” Yellen said on the same network.

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