Yellen: No signs US economy is in recession, warns against government shutdown

U.S. Treasury Secretary Janet Yellen delivers remarks on „Next Steps in the Evolution of Development Financing” at the US Center for Strategic and International Studies (CSIS) in Washington, Feb. 9, 2023. REUTERS/Leah Millis/File Photo Get license rights

Washington, September 18: US Treasury Secretary Janet Yellen said on Monday that there are no signs that the US economy is headed for a recession.

„I don’t see any signs that the economy is in danger of falling,” Yellen told CNBC, adding that the U.S. labor market is also strong and inflation is slowing.

„There is no reason to stop,” he said. „Creation…creating a situation where inspiration can be lost is something we don’t need dangerously at this time.”

Yellen said it was too early to assess the impact of a strike by the United Auto Workers against three U.S. automakers in Detroit, one of the most ambitious U.S. industrial labor actions in decades.

He underscored President Joe Biden’s commitment to collective bargaining and made sure workers were „coming forward” because the industry was doing well.

The labor market was strong, he said, but it was cool and „not as hot as it should have been,” which was key to the goal of keeping inflation down to 2%.

Yellen, a former chair of the Federal Reserve, said the central bank’s moves to raise interest rates were beginning to affect the housing market, but consumer spending remained „very strong.”

He said the Biden administration is keeping a close eye on gasoline prices after recent surges, and that Biden is committed to making sure prices are affordable for Americans.

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Reporting by Andrea Shalal and Doina Chiaku; Editing by Mark Porter and Andrea Ricci

Our Standards: Thomson Reuters Trust Principles.

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