Treasury Secretary Janet Yellen said Thursday in an exclusive interview with CNN that she sees no signs of a recession in the near future as the US economy recovers from six months of contraction.
In a one-person interview in Ohio that aired on CNN’s “Erin Burnett OutFront,” Yellen said third-quarter GDP data released on Thursday showed the strength of the U.S. economy as policymakers rush to slow down the increasing cost of which has. had a major impact on Americans’ views on the economy – and put Democratic leaders on Capitol Hill less than two weeks away from the midterm elections.
Look, what we’re seeing now is strong growth this quarter. It’s clear that growth has slowed as the recovery has been slow from high unemployment,” Yellen said when asked if the new GDP data was fueling any concerns. “We’re in a recession. full service. It is natural that growth will be slow. But it has more than three quarters of this year, but it continues to be good. We have a strong labor market. I don’t see any signs of this economic collapse at this time.”
Yellen’s optimism comes amid growing concern from economists and financial workers that a recession could be at some point next year, but depending and part of the latest data that showed signs of slowing down in developing economies. way to a “soft recession” as the Federal Reserve prepares to continue its rate hike.
Gross domestic product – the largest measure of economic activity – rose by an annual rate of 2.6% in the third quarter, according to the first estimate released on Thursday by the Bureau of Economic Analysis. That’s a reversal from a 1.6% decline in the first quarter of the year and a negative 0.6% in the second.
But Yellen’s views also underscored the complex balancing act President Joe Biden and his economic leaders have attempted this year, as they seek to demonstrate a rapid economic recovery and major legislative victories. and vowed to fight the rising tide.
“Inflation is too high – it’s unacceptable that the American people feel that every day,” Yellen said when asked how the government calculated its views on the US economy and the anger at center of the electorate. Yellen acknowledged that the prices will take time to recover, saying that efforts to bring them back to levels “that people are familiar with” will cover “the next few years.”
It is a fact that the government is trying to take what the workers see as a strong record. Biden, asked about the economy last week, told reporters that it is “strong as hell,” criticizing Republicans.
But Yellen admitted that the President’s assessment that the economy remains strong, appears in comparison to how other economies around the world are doing.
“If you look around the world, there are many economies that are suffering not only from high prices but from weak economic performance, and the United States stands out. We have no employment is at a 50-year low. … We saw in the news this morning – consumer spending and the budget continue to grow. We have strong household income, business income, strong bank income,” He said.
He added, “This is not a declining economy and we continue to do well.”
Yellen also acknowledged frustration within the administration that efforts to get the U.S. economy out of trouble haven’t gotten the credit officials believe it should.
“There are a lot of problems that we would have had, and difficulties that many American families could face,” Yellen said. “These are problems that we don’t have, because of what the Biden administration has done. So, a lot of times, people don’t get credit for problems that don’t exist.”
Yellen traveled to Cleveland as part of the administration’s campaign to highlight a key legislative victory — and tens of billions of dollars in corporate investment that the policies have boosted manufacturing in the country.
It is a crucial part of an economic plan designed to address the many vulnerabilities and mistakes that have devastated the world as Covid-19, as well as massive federal investment in infrastructure and upgrading – or creating from scratch – key pieces of the supply chain. very dangerous.
Listing a series of private sector investments, including the $20 billion Intel company that opened a few hours outside of Columbus, Yellen said they are “good investments that are visible right now,” even if he agreed that they would take time to complete the work.
Yellen promised that those efforts will be felt as they move forward in the economy in the months and years ahead. Asked if the government’s message to the American people was one of patience, Yellen said: “Yes.”
And you’re starting to see repaired bridges coming online – not in every city, but soon. Many cities are going to see roads being improved, and bridges that are crumbling are being repaired. We see money going into research and development, which is really an important source of long-term strength for the American economy. And America’s power will increase and we will become a more competitive economy,” he said.
Yellen also addressed the battle lines drawn this week over raising the debt ceiling, Washington’s own persistent problem as House Republicans again vowed to use leverage if they take a majority.
“The President and I agree that members of Congress should not arrest Americans who think it’s OK to damage the United States’ credit rating and threaten default on the US Treasury, which is the main source of the world’s financial markets,” Yellen said. .
But Yellen, who has long criticized the “destructive” nature of the show, has also advocated removing the debt limit entirely from law. A group of Democrats wrote to Democratic leaders to ask for the measure to be done in a recess session of Congress, but Biden rejected the idea this week.
When asked about the split, Yellen said only that she and Biden agreed that it was “really up to Congress to raise the debt ceiling.”
Yellen added, “It is very important that it be done, and I would like to see it done in the way that it can be done.”
As the administration moves on to a period that leads to senior leaders leaving the administration, he made it clear that he does not plan to be one of them. Asked about the report she told the White House that she wants to stay next year, Yellen said it’s a “legitimate hunger.”
Yellen said: “I really enjoyed the program that we talked about. “I also see it strengthening economic growth and addressing climate change and strengthening the American family. But I want to be part of that.”