Yellen Says US Economy Shows No Signs of Recession
AllSides Summary
Treasury Secretary Janet Yellen on Sunday acknowledged that the U.S. economy is slowing but pushed back against the notion of a recession.
"This is not an economy that is in recession," Yellen said on NBC’s "Meet the Press." "A recession is a broad-based contraction that affects many sectors of the economy. We just don’t have that." The treasury secretary also predicted that the Federal Reserve’s anti-inflation policies will be "successful."
Yellen pointed to growing consumer spending and the "extremely strong" labor market, which added nearly 50% more jobs than some economists expected in the month of June. She also noted how the unemployment rate has remained at 3.6%, which is close to the 52-year low attained months before the pandemic. Yellen promoted an economic data organization called the National Bureau of Economic Research (NBER), which defines a recession as "a significant decline in economic activity that is spread across the economy and lasts more than a few months."
Some left-rated outlets linked the weakened U.S. economy to "slower growth overseas" and emphasized how top European officials have also "downplayed" recession concerns. Right-rated outlets were more likely to highlight how the Biden administration has "dismissed concerns" about rising inflation and accentuated polls that found a majority of top business executives believe a recession will take place by early 2023.
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From the Center
Yellen says economy shows no signs of recession
Treasury Secretary Janet Yellen said Sunday that growing consumer spending, industrial output, credit quality and other economic indicators don’t suggest the economy is in a recession, although she acknowledged that “way too high” inflation is straining the system.
“This is not an economy that is in recession,” Yellen told moderator Chuck Todd on NBC’s “Meet the Press.”
Businesses and consumers are seeing the economy slow after a rapid growth spurt last year, which brought the labor market back to life after the COVID-19 pandemic, the secretary said. But this transitional slowdown is “necessary and...
From the Right
Treasury Sec. Janet Yellen acknowledges economic ‘slowdown’ but downplays recession fears
Treasury Secretary Janet Yellen acknowledged Sunday that the U.S. is experiencing an economic "slowdown" but downplayed the potential for a recession, arguing that the country is in a period of "transition" following rapid economic growth.
"The economy is slowing down," Yellen said on NBC News’ "Meet the Press," adding that a correction is "appropriate" for a healthy economy.
"The labor market is now extremely strong," she said. "This is not an economy that's in recession, but we're in a period of transition in which growth is slowing. And that's necessary and appropriate,...
From the Left
Yellen downplays US recession as wave of economic data looms
Treasury Secretary Janet Yellen on Sunday said the U.S. economy is slowing but pointed to healthy hiring as proof that it is not yet in recession.
Yellen spoke on NBC’s “Meet the Press” just before a slew of economic reports will be released this week that will shed light on an economy currently besieged by rampant inflation and threatened by higher interest rates. The data will cover sales of new homes, consumer confidence, incomes, spending, inflation, and overall output.
The highest-profile report will likely be Thursday, when the Commerce Department will release its first estimate...
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