The US recession is not “inevitable”, says the Minister of Finance

US Treasury Secretary Janet Yellen said on Sunday that the recession is not “unavoidableIn the United States, a few days after the new rise in key interest rates by the US Federal Reserve, which raises concerns about the prospect of economic decline. «I do not think a decline is inevitable“Janet Yellen said on ABC News, giving in to expectations, however.”until the economy slows down“In the context of transition”slow և steady growth«.

The US version of the recession is gaining momentum after the Central Bank (Fed) on Wednesday made a historic decision to sharply raise its key interest rates in an attempt to curb rising inflation. «(Fed) President Powell has said that his goal is to reduce inflation while maintaining the strength of the labor market. It will take skill և success, but I believe it is possible.“The Minister of Finance said, calling the level of inflation.”unacceptable«. «President Biden’s priority is to reduce it“- said Janet Yellen.

The US economy has already slowed down, falling 1.5% of GDP in the first quarter, and the start of the second quarter seems to indicate a slowdown in some areas, such as industry, real estate and retail. A recent survey by the Conference Board Institute found that 76% of the 750 executives surveyed believe that either a recession is on the horizon or that it is already effective.

However, the Minister of Finance sees grounds to hope that the recession will not take place, especially with the maintenance of consumer spending. “very strong“, According to him. «It is clear that most consumers, even lower-income households, continue to have savings that can serve as a buffer, allowing them to continue spending.“Janet Yellen was supported by ABC News.