Treasury Secretary Janet Yellen expressed optimism about the U.S. economy and inflation prospects, stating that she does not anticipate a recession. Speaking in an interview with Bloomberg Television, Yellen highlighted the strength of the U.S. labor market and described recent inflation data as “encouraging.” She believes that the United States is on the right path to bring inflation down.
Signs of Improving Inflation
Recent government data supports the positive outlook on inflation. In June, U.S. consumer prices only rose by 0.2%, marking the slowest rate of inflation since 2021. Wholesale prices have also remained relatively stable over the past year. These figures indicate a cooling off of inflation, which has further eased concerns about a potential recession. Economists now see a reduced likelihood of the Federal Reserve needing to take drastic measures to control price pressures.
Considerations from China’s Economic Performance
Yellen acknowledged the impact of China’s slower growth on the U.S. economy, cautioning that it could result in negative spillovers. Despite this concern, U.S. stocks showed modest gains on Monday, following news of China’s economic situation, which had dampened risk appetite in global markets.
Overall, Yellen’s positive outlook reflects confidence in the U.S. labor market and the encouraging trend in inflation data. While challenges remain, the current trajectory suggests a favorable path for the United States.