‘Risk of recession in the US economy’ | Financial

The minister stated that it is not yet certain whether the downward movement will continue. According to her, the number of new labor contracts and consumption shows that there is not yet a recession. Last week, figures showed that unemployment is not falling any further. “We are in a period of declining growth. That is necessary and appropriate in the current situation of over-inflation,” said Yellen, who hopes the rate hike from her previous employer, the Federal Reserve, can cool the price rise without an economic downturn.

The US government is now selling oil from its own strategic reserves, which has already caused gasoline prices to fall. A good thing, said the minister. “I don’t know if we can avoid a recession. But I assume that there is a way to keep the labor market going and at the same time bring inflation down. In a recession, the economy is not doing so well on all fronts. We don’t see that now,” said Yellen. Traditionally, an economy is in recession when it shrinks for two quarters in a row.

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