Fed can contain inflation without recession, says US Treasury secretary

US Treasury Secretary Janet Yellen reiterated this Thursday (12) that inflation is “a serious concern” for the administration of President Joe Biden.

In the House of Representatives Financial Stability Committee, she expressed confidence in the work of the Federal Reserve (Fed, the US central bank) to contain the trajectory of prices without causing a recession.

Yellen also highlighted the fact that “we are not the only country facing recession”. She cited external factors, such as problems in production chains.

Regarding the American economy, he also highlighted the strength of the job market at this time.

Asked about abortion, at a time when the issue was being discussed in the country, after a draft decision of the Supreme Court was leaked that could mean a decline in access to the practice in the US, Yellen stated that “there is a causal link between access to abortion and women’s quality of life”.

According to her, reversing the current legislation would hinder the productivity of “large groups of women” in their main years of working life, “especially the most vulnerable”.

In addition, he mentioned studies according to which the lack of access to abortion tends to result in a greater need for official help.

Another point brought up by several deputies at the hearing was the lack of infant formula for sale in parts of the country, with problems in the production chains.

According to her, the US government is working to tackle the problem.

In a statement, the White House said Biden will speak with retailers and manufacturers of these products on Thursday to receive an update on efforts to improve his offering to American families.

The government also says that it will announce additional actions this afternoon to resolve the situation.