US Treasury Secretary Janet Yellen has acknowledged the country is facing an economic “slowdown.”
According to Yellen, America is going through a period of “transition” after the historic economic growth, but she still ruled out the possibility of a recession in the near future.
Janet Yellen: America Facing “Economic Slowdown”
Speaking on NBC News’ “Meet the Press,” Yellen noted the current economic downturn is “appropriate” for a healthy economy.
Furthermore, the secretary asserted the labor market is “extremely strong” these days, which suggests the economic slowdown is “necessary” so the country could achieve “steady and sustainable” economic growth.
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Yellen argued America is nowhere near a recession, adding many sectors of the economy are affected at the same time during a recession, which is not happening right now.
According to Yellen, a recession can only come after two consecutive quarters of negative GDP.
While the US already reported negative GDP in the last quarter, Yellen still stated even another negative GDP this time would not mean a recession for the country. Economists have already predicted a negative GDP growth rate this quarter.
US Treasury Secretary Janet Yellen says she’s not seeing any evidence of a US recession now.
Grandma needs her glasses…
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When NBC anchor Chuck Todd pressed the secretary on her hypocrisy of relating a recession with the two consecutive negative GDPs, Yellen started to beat around the bush.
She stated even if two consecutive negative GDP rates mean a recession, the National Bureau of Economic Research determines the possibility of a recession using various other indicators, which “continue to be strong” in America.
These comments of the labor secretary come at a time when many Democratic strategists are warning about a possible recession.
On Sunday, former economic adviser for President Obama, Larry Summers, told CNN the United States would not have a “soft landing” in the “recession,” which may come any time soon.
Last month, Summers insisted a recession within the next two years is “almost inevitable.”
Yellen’s Partisan Comments Are Not New
Even though Yellen has a Ph.D. in economics, most of her economic projections are highly partisan in nature.
In June, America recorded soaring inflation for 13 months straight, but she noted the factors contributing to the inflation were “transitory.”
She has previously acknowledged, in May, that the country was facing unprecedented inflation, admitting her economic projections were wrong.
According to Yellen, inflation is “way too high,” but the Fed’s attempt to increase the interest rate will help the economy by curbing the skyrocketing prices.
Similarly, she stated President Biden is also trying to decrease gas prices by releasing strategic oil reserves to ease the supply chain crisis.
Yellen insisted the economy is showing a promising outlook as consumer spending is growing, Americans are still spending more money, and the market is creating almost 400,000 jobs per month.
Likewise, she suggested the unemployment rate stands at a mere 3.6 %, which does not happen in a recession.
This article appeared in TheDailyBeat and has been published here with permission.