Minister of Finance Janet Yellen stated that she believed the US economy is at risk of recession. Speak against BloombergYellen says that despite the encouragement of inflation and job numbers, she doesn’t want to “minimize the risk of a recession” amid actions by the Federal Reserve.
Yellen ultimately pointed to the increase in interest rates as the main culprit of residual risk. Claiming that the Fed’s actions are “slowing down the economy,” in an interview with Bloomberg News.
The US Treasury Secretary insures risk of recession
Concerns and concerns about an impending recession have been a constant headline for the current economic realities of the United States. After a year of near-constant rate hikes by the Federal Reserve, many are wary of a potentially delayed response to the recession.
So does Treasury Secretary Janet Yellen, who still sees a recession risk for the US economy. In a statement to Bloomberg, Yellen said, “I’m quite happy with the data I’ve seen so far, but I don’t want to minimize the risk of a recession,” in an interview in Johannesburg. Speaking of Federal Reserve interest rates, “slowing down the economy” as the main reason for Yellen’s concern
In addition, Bloomberg noted that a government report released yesterday revealed positive statistics. According to the report, “in the fourth quarter of 2022, the U.S. economy grew at a better-than-expected rate of 2.9% year-on-year,” suggesting slowing growth. In addition, the report noted that personal consumption has risen to 2.1% per year, which is lower than forecasts.
Conversely, inflation-adjusted sales to domestic buyers increased. at least 0.8%. “I don’t see any real relaxation, unraveling of economic activity,” Yellen added. As Bloomberg persuasively argues, many experts expect the economy to contract in the second and third quarters. Which then leads to a 65% chance of a recession “within the next year”.