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Secretary of the Treasury: A recession in the US is not inevitable.



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Janet Yellen, the US Secretary of the Treasury, warned on Sunday that a recession in the US is not “inevitable”, a few days after a further increase in the interest rate to counter inflation, a decision that raises concerns about a possible economic contraction, according to Digi 24.

“I don’t think a recession is inevitable,” said Janet Yellen, adding that she expects “the economy to slow down” in a transition to “slow and steady growth.”

Fear of a recession is mounting in the US following Wednesday’s historic decision by the central bank to raise the benchmark interest rate by 0.75%.

“US Central Bank President Jerome Powell has said his goal is to reduce inflation while maintaining a strong labor market. It takes talent and luck, but I think it’s possible, “said Janet Yellen, who described the current level of inflation as” unacceptable. ” “It is President Biden’s priority to reduce it,” she said.

The Secretary of the Treasury claimed that the war in Ukraine was one of the causes of rising food and fuel prices.

Jerome Powell said on Wednesday that the Central Bank was not trying to “induce a recession”, but to “bring inflation back to 2%” and maintain “a solid labor market”.

The Central Bank’s forecast indicates inflation of 5.2% this year, up from 4.3% in March, and economic growth in the US of only 1.7%, down from the last estimate of 2.8%. %.

Janet Yellen hopes, however, that such a scenario will not materialize, relying on maintaining a high level of consumer spending.

“It is clear that most consumers – even the lowest-income households – still have savings that can act as a buffer and will allow them to continue spending,” said the US Treasury secretary.