According to an interview with Bloomberg Television on Monday, U.S. Treasury Secretary Janet Yellen does not expect the United States economy to enter a recession, considering the strength of the labor market and cooling inflation.
“I think we are on the right track to bring down inflation,” Yellen said. “The most recent inflation figures were very encouraging.” She added, “I believe we are on the right track in the United States.”
Last week, it was announced that U.S. consumer prices rose by only 0.2 percent in June, and inflation has decreased to its lowest level since 2021. Wholesale prices have declined even further, and the producer price index has remained virtually unchanged over the past year.
As a result, economists see a greater likelihood that the Federal Reserve does not need to “hit the brakes” to control price pressures.
Regarding disappointing growth figures from China, Yellen mentioned on Monday that slow growth there could have some “negative spillover effects” for the U.S.
About the author: John Campbell
John Campbell is the godfather of Polimedia and the oldest author from the whole team. His occasional guidance is crucial for everyone he advises.
