Janet Yellen, the Secretary of the Treasury, stated on Sunday that recent robust employment numbers ought to allay the concerns of American citizens regarding an impending recession.
In an appearance on NBC’s “Meet the Press,” Federal Reserve Chairwoman Janet Yellen stated that the U.S. economy is decelerating but is not heading toward a crisis.
“The labour market is now extremely strong,” said Yellen, pointing to the average of 375,000 jobs gained each month over the past three months. “The labour market is now extremely strong.”
“The economy is not currently experiencing a downturn in its performance. She stated, “However, we are currently undergoing a transitional period in which growth is accelerating at a slower rate.” “That’s both necessary and appropriate, and we need to be growing at a steady and sustainable pace,” the speaker said.
Despite this, the most recent weekly report on unemployment showed that there was an increase in claims for a third consecutive week.
According to data provided by the Labor Department, the number of state unemployment claims reached its highest point since November with 251,000 filings during the week that ended on July 16. She stated that she did not believe that the economy was in a recession at the time.
“A recession is characterized by widespread deterioration in the state of the economy. That is not something that we are observing at this time. Furthermore, I do not believe that to be required in any way.
It should come as no surprise that a member of Vice President Joe Biden’s cabinet would express optimism regarding the Federal Reserve’s ability to rein in inflation. The Treasury Secretary has expressed such optimism.
The most recent month, July 2021, saw an increase in inflation of more than 9 per cent when compared with the previous month of June 2021, reaching the highest rate in several decades.
“The rate of inflation is way beyond acceptable levels. “And, you know, the Fed is tasked with putting in place policies that will bring inflation down,” she said.
“And, you know, the Fed is charged with putting in place policies that will bring down inflation.” “And I have full confidence in their accomplishments,” the speaker continued.
When compared to the prior month of June 2021, the most recent month of July 2021 saw an increase in inflation of more than 9 per cent, reaching the highest rate in several decades.
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Yellen did acknowledge, however, that there are significant economic challenges all over the world.
“Not only in the United States but also in a good number of countries that are considered to be our neighbours, high inflation rates have been recorded.
“We have a war in Ukraine that threatens potentially even higher oil prices than we are seeing right now,” she said. “We are seeing them right now.”
She made the statement, “I’m not saying that we will definitely avoid a recession, but I think there is a path that keeps the labour market strong and brings inflation down.”
