US Treasury Secretary Janet Yellen said on Sunday that US economic growth was slowing and acknowledged the risk of a recession, but said a downturn was not inevitable.
Yellen, speaking on NBC’s “Meet the Press,” said strong hiring and consumer spending numbers showed that the US economy is not currently in a recession.
US hiring remained robust in June, with 372,000 jobs created and the unemployment rate remaining at 3.6%.
It was the fourth consecutive month of openings above 350,000.
“This is not an economy that is in recession,” Yellen said. “But we are in a transitional period where growth is slowing and that is necessary and appropriate.”
Still, last week’s data suggested that the labor market was weakening, with new claims for unemployment benefits hitting an eight-month high.
Yellen said that inflation “is very high” and that recent interest rate hikes by the Federal Reserve are helping to rein in rising prices.
Yellen, who once led the Fed, hopes the US central bank can cool the economy down enough to lower prices without triggering a broad economic contraction.
“I’m not saying we’re definitely going to avoid a recession,” Yellen said.
“But I think there is a trajectory that keeps the labor market strong and reduces inflation.”
Source: CNN Brasil
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