Treasury Secretary Janet Yellen DENYS economy is in recession but admits it’s ‘slowing down’: Biden official says 9.1% inflation is ‘too high’ but ‘signs’ of downturn not there
Treasury Secretary Janet Yellen said in a Meet The Press interview that the slowdown in the economy was “necessary and appropriate” for long-term health.
Biden official was asked if Americans should ‘prepare’ for a recession
It comes as the economy becomes a growing problem for Democrats heading into November’s midterm elections
President Biden also called inflation too high, but said data was ‘outdated’
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Treasury Secretary Janet Yellen admitted the economy was “slowing down” on Friday amid fears of an impending financial downturn – but denied that the country was in the midst of a recession.
She also defended the slowdown as “necessary” for the long-term health of the economy.
The senior Biden official was asked on NBC News’ Meet The Press whether Americans should “prepare” for a recession.
Yellen did not immediately rule it out in the future, but emphasized that the ‘signs’ of a typical recession in the current economy are not present.
Americans’ wallets are a growing concern for Democrats as the midterm elections loom against the backdrop of multiple polls indicating voters are unhappy with the way the economy is being run.
“The economy is slowing down. Last year it grew very quickly at about 5.5 percent, and that managed to get people who had lost their jobs during the pandemic back to work,” Yellen said on Sunday.
She also pointed to impressive gains in the job market in recent months – despite data from late last week suggesting that even that could slow as unemployment claims rise.
“This is not an economy that is in recession, but we are in a transition period where growth is slowing, and that is necessary and appropriate, and we need to grow at a steady and sustainable pace,” Yellen said.
Treasury Secretary Janet Yellen said the ‘signs’ of a recession are not present in the current economy
“So there’s a slowdown and companies are seeing that, and that’s appropriate, as people now have jobs and we have a strong labor market.
“But you’re not seeing any of the signs now — a recession is a broad contraction that affects many sectors of the economy. We just don’t have that.’
Metrics such as consumer spending, industrial production and credit quality remain above recessionary levels, Yellen explains.
Although she felt sorry for the burden that rising prices have placed on those consumers.
‘Inflation is way too high and you know the [Federal Reserve] is tasked with enacting policies that will bring inflation down, and I expect this to be successful,” she said.
The latest inflation data shows that the average cost of consumer goods rose 9.1 percent in June, according to the Department of Labor, the highest level since 1981.
President Joe Biden admitted the number was unacceptable, but insisted the figure was “outdated” and did not include the steady decline in gas prices this month.
US inflation rose to 9.1 percent in June, the highest since 1981 and ahead of economists’ forecasts
President Joe Biden virtually attends a meeting with his economics team at the South Court Auditorium at the White House complex in Washington, Friday, July 22
Pump prices have fallen steadily after hitting a record high of $5 a gallon in mid-June.
On Sunday, the national average price was about $4.37 on Sunday, July 24. That’s still more than a dollar above the July 2021 average price.
Biden held a meeting of his economic advisers, including Yellen, Friday on how to further cut gas prices.