U.S. Not Teetering On Recession, Yellen Declares

U.S. Treasury Secretary Janet Yellen stated on Sunday, July 24, 2022, that the United States' economic growth is slowing and that a recession is possible, but that a dip is not unavoidable, according to Reuters' Joel Schectman and David Lawder.

Photo Insert: Treasury Secretary Janet Yellen stated on NBC's "Meet the Press" that solid hiring and consumer expenditure in the United States demonstrated that the economy is not in recession.

Yellen stated on NBC's "Meet the Press" that solid hiring and consumer expenditure in the United States demonstrated that the economy is not in recession. In June, the United States added 372,000 jobs, while the unemployment rate remained at 3.6 percent. It was the fourth month in a row when job growth exceeded 350,000.

"This is not an economy that is in recession," stressed Yellen, who previously directed the Federal Reserve. "But we’re in a period of transition in which growth is slowing and that’s necessary and appropriate."

Nonetheless, figures released last week indicated that the labor market was deteriorating, with new claims for unemployment benefits reaching their highest level in eight months. Yellen stated that inflation is "way too high," and that recent Fed rate hikes are assisting in bringing skyrocketing prices back under control.

Furthermore, the Biden administration is selling oil from the Strategic Petroleum Reserve, which Yellen said has already contributed to lower gas costs.

"We've seen gas prices just in recent weeks come down by about 50 cents (a gallon) and there should be more in the pipeline," she said.

Yellen hopes the central bank can cool the economy enough to bring down prices without triggering a broad economic downturn. “I'm not saying that we will definitely avoid a recession," Yellen said. "But I think there is a path that keeps the labor market strong and brings inflation down.”

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