2023-06-24 10:39:22
US Treasury Secretary Janet Yellen
US Treasury Secretary Janet Yellen expected, on Friday, that the chances of the US economy falling into recession would decline, given the flexibility of the labor market and the decline in inflation.
“I wouldn’t say there are no risks because the US Federal Reserve is tightening policies,” Yellen said in an interview with Bloomberg, referring to the US central bank raising interest rates ten times since March 2022, with the possibility of it raising interest once more.
She pointed to the need to cut spending so that inflation can be brought under control.
The minister stressed that the main price index, which excludes food and energy prices, is “very high”.
“Inflation has actually gone down a lot, and it will continue to go down,” she added, attributing this in part to adjustments in the real estate market.
US Federal Reserve Chairman Jerome Powell said in a speech to the US Congress that he expects the central bank to raise interest rates in the world’s largest economy before the end of this year.
“All of the participants in the FOMC expect it to be appropriate to raise interest rates a bit by the end of the year,” Powell said.
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