U.S. Treasury Secretary Janet Yellen stated on Monday that she does not see any indicators of an financial downturn in the United States. She emphasized that the labor industry remains sturdy and inflation is decreasing. On the other hand, she warned that if Congress fails to pass legislation to maintain the government operating, it could potentially slow the momentum in the economy. Yellen stressed the significance of avoiding a government shutdown and the connected dangers in the course of this period.
Yellen also commented on the current strike by the United Auto Workers against the Detroit 3 U.S. automakers. She stated that it is also early to identify the effect of the strike, as it depends on its duration and who is impacted. She highlighted President Joe Biden’s commitment to collective bargaining and making certain that workers in the sector are also benefiting from its accomplishment.
With regards to the labor industry, Yellen talked about that while it remains sturdy, it is cooling down and not as sturdy as ahead of. This is in line with the objective of lowering inflation to two%. Yellen acknowledged that the Federal Reserve’s selection to raise interest prices has began to effect the housing industry, but customer spending remains robust.
Yellen also addressed the challenge of increasing gasoline rates and reassured that the Biden administration is closely monitoring the circumstance. She stated that Biden is committed to making certain that gasoline rates stay cost-effective for Americans.
In summary, Yellen sees no indicators of an financial downturn but warns about the prospective slowdown if Congress does not pass legislation to maintain the government operating. She emphasized the significance of avoiding a government shutdown. Yellen also discussed the effect of the UAW strike, the cooling labor industry, the influence of interest price hikes on the housing industry, and the concentrate on cost-effective gasoline rates.