United States: no “inevitable recession”, according to the Treasury Secretary

Will the United States experience a recession? It is not “inevitable” according to US Treasury Secretary Janet Yellen, just days after another hike in key rates by the US central bank raised fears of an economic contraction. “I don’t think a recession is inevitable,” Janet Yellen told ABC News, conceding, however, that she expects “the economy to slow down” as it transitions to “slow and slow growth.” steady”. The hypothesis of a recession in the United States is gaining momentum after the historic decision on Wednesday by the central bank (Fed) to raise its key rates sharply, in an attempt to curb galloping inflation.

“(Fed) Chairman Powell has said his goal is to bring inflation down while maintaining a strong job market. It’s going to take skill and luck, but I believe it’s possible” , the Treasury Secretary said, calling the level of inflation “unacceptable”. “It’s President Biden’s priority to reduce it,” said Janet Yellen. The US economy has already slowed with a 1.5% contraction in GDP in the first quarter, and the start of the second quarter seems to show that the slowdown is continuing in certain sectors such as manufacturing, real estate and retail sales.

Three-quarters of bosses fear a recession

A survey by the Conference Board institute recently revealed that 76% of the 750 bosses questioned considered either that a recession was looming on the horizon, or that it was already in effect. But the Treasury Secretary sees reason to hope that a recession does not materialize, especially with consumer spending remaining “very strong”, she said. “It’s clear that most consumers – even lower-income households – continue to have savings that can act as a buffer and will allow them to continue spending,” said Janet Yellen on ABC News.