Yellen Expresses Confidence in U.S. Economy Avoiding Recession in Biden Presidency
Treasury Secretary Janet Yellen expressed confidence Monday that the U.S. economy can avoid a recession this year, citing the addition of more than 500,000 jobs in January that brought unemployment to a 54-year low.[0]
Yellen, speaking during an interview on ABC's “Good Morning America,” said the economy remains “strong and resilient” and is on a path of avoiding a recession.[1] She touted job growth and low unemployment, as well as the Federal Reserve's efforts to slow price increases.[2]
“What I see is a path in which inflation is declining significantly, and the economy is remaining strong,” Yellen said.[3]
The consumer price index, which refers to the cost of goods and services, dipped 0.1% in December, but rose 6.5% in the year through December—a figure Yellen said “remains too high.”[0]
Yellen renewed her call for Congress to increase the U.S.’ $31.4 trillion debt limit, after the federal government reached the cap last month and the Treasury was forced to deploy “extraordinary measures” to stave off a default.[0]
“America has paid all of its bills on time since 1789, and not to do so would produce an economic and financial catastrophe, and every responsible member of Congress must agree to raise the debt ceiling,” Yellen said.[0]
Yellen commented that legislation passed during the Biden presidency, including the $369 billion Inflation Reduction Act, has aided the central bank in its mission to decelerate inflation.[2]
The Federal Reserve has the main duty in this area, according to her, and legislation that has been agreed on by both political parties is helping to make the economy better and reducing expenses for citizens of the United States.[2] This is not open to negotiation.[2]
40% of Americans report that they are worse off financially since President Biden took office, as indicated by an ABC News/Washington Post poll published on Sunday.[2]
The Chief Executive Officer of Bank of America, the second-largest bank in the United States, informed CNN that he is wishing for legislators to fix their conflicts, as the market and economy favor stability.[4] It is impossible to overlook the possibility that the nation might default on its debt.[5]
Yellen said Biden will be talking about the “strong and resilient” U.S.[6]
0. “Yellen Downplays Recession Fears After U.S. Unemployment Reaches 54-Year Low” Forbes, 6 Feb. 2023, https://www.forbes.com/sites/saradorn/2023/02/06/yellen-downplays-recession-fears-after-us-unemployment-reaches-54-year-low
1. “Yellen Touts Employment Jump in Playing Down US Recession Danger” BNN Bloomberg, 6 Feb. 2023, https://www.bnnbloomberg.ca/yellen-touts-employment-jump-in-playing-down-us-recession-danger-1.1879984
2. “Treasury Secretary Janet Yellen rejects recession fears, says economy is ‘strong'” ABC News, 6 Feb. 2023, https://abcnews.go.com/Business/treasury-secretary-janet-yellen-rejects-recession-fears-economy/story?id=96919098
3. “Janet Yellen: ‘You don't have a recession' with unemployment at 50-year low” Fox Business, 6 Feb. 2023, https://www.foxbusiness.com/economy/janet-yellen-you-dont-have-recession-unemployment-at-50-year-low
4. “Bank of America CEO: We're preparing for possible US debt default” KTVZ, 6 Feb. 2023, https://ktvz.com/money/cnn-business-consumer/2023/02/06/bank-of-america-ceo-were-preparing-for-possible-us-debt-default/
5. “Bank of America CEO: We're preparing for possible US debt default” KADN, 6 Feb. 2023, https://www.kadn.com/news/national/bank-of-america-ceo-were-preparing-for-possible-us-debt-default/article_c2ffda9f-a017-5320-9eae-cb6e790370e6.html
6. “Janet Yellen: You don't have a recession when you have the lowest unemployment rate in 50 years” KTEN, 6 Feb. 2023, https://www.kten.com/story/48320650/janet-yellen-you-dont-have-a-recession-when-you-have-the-lowest-unemployment-rate-in-50-years
