Yellen Says US Economy Shows No Signs of Recession
Summary from the AllSides News Team
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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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.
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