U.S. Treasury Secretary Janet Yellen said on Monday that she doesn’t see any indicators of an financial downturn in america. She emphasised that the labor market stays robust and inflation is lowering. Nevertheless, she warned that if Congress fails to go laws to maintain the federal government working, it may doubtlessly sluggish the momentum within the economic system. Yellen pressured the significance of avoiding a authorities shutdown and the related dangers throughout this era.
Yellen additionally commented on the current strike by the United Auto Staff in opposition to the Detroit Three U.S. automakers. She said that it’s too early to find out the impression of the strike, because it is dependent upon its length and who’s affected. She highlighted President Joe Biden’s dedication to collective bargaining and guaranteeing that employees within the trade are additionally benefiting from its success.
Relating to the labor market, Yellen talked about that though it stays robust, it’s cooling down and never as robust as earlier than. That is in step with the target of decreasing inflation to 2%. Yellen acknowledged that the Federal Reserve’s resolution to boost rates of interest has began to impression the housing market, however shopper spending stays sturdy.
Yellen additionally addressed the problem of rising gasoline costs and reassured that the Biden administration is intently monitoring the state of affairs. She said that Biden is dedicated to making sure that gasoline costs stay inexpensive for Individuals.
In abstract, Yellen sees no indicators of an financial downturn however warns in regards to the potential slowdown if Congress doesn’t go laws to maintain the federal government working. She emphasised the significance of avoiding a authorities shutdown. Yellen additionally mentioned the impression of the UAW strike, the cooling labor market, the affect of rate of interest hikes on the housing market, and the deal with inexpensive gasoline costs.