US Treasury Secretary Janet Yellen said on Thursday (December 8) that a recession in US was ‘not inevitable’, adding that the economy was on the right track in lowering inflation. Yellen spoke with reporters during her visit to the Bureau of Engraving and Printing’s currency facility in Fort Worth, Texas.
On “whether or not we can avoid a recession, I believe the answer is yes,” she told reporters.
Yellen’s comments came on the heels of a forceful campaign by the US central bank to cool demand this year, walking a tightrope between lowering consumer costs while trying not to tip the economy into a downturn.
There is still a feeling among economists that the US may experience downturn next year.
Yellen however, said that supply chain bottlenecks had begun to ease and new apartment rents have “essentially peaked,” with the labor market cooling slightly as well.
“Without seeing significant net nationwide layoffs, I believe we’re on the right track in terms of lowering inflation and a recession’s not inevitable,” she added.
As businesses tone down their growth expectations and hiring plans, the number of people leaving their jobs has also dipped a little, she said.
Last week, Federal Reserve Chair Jerome Powell added it remains “very plausible” for the US to reach a soft landing, referring to a scenario where unemployment rises but the economy avoids a severe recession.
(With inputs from agencies)
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