Treasury Secretary Janet Yellen said that several economic indicators show the economy isn’t headed for recession, and, much like she portrayed inflation earlier in the year, the slowdown being seen by businesses and consumers is simply “transitional”.
According to The Hill:
“This is not an economy that is in recession,” Yellen told moderator Chuck Todd on NBC’s “Meet the Press.”
Businesses and consumers are seeing the economy slow after a rapid growth spurt last year, which brought the labor market back to life after the COVID-19 pandemic, the secretary said. But this transitional slowdown is “necessary and appropriate” given the rapid changes.
“You don’t see any of the signs. Now, a recession is a broad-based contraction that affects many sectors of the economy. We just don’t have that,” Yellen said, but she acknowledged the impacts of uncommonly high inflation numbers.
She said she expects federal government policies aimed at controlling inflation to be successful, putting downward pressure on record gas prices, rising food costs and other economic problem areas for everyday Americans, with help from the Biden administration.