The head of the US Treasury did not rule out the possibility of a recession in the country

The possibility of a US recession cannot be ruled out. About it stated US Treasury Secretary Janet Yellen in an interview with CBS.

The minister noted that in the United States now “too high inflation.” According to her, the way to reduce inflation is connected with a “healthy labor market”. She added that, according to the data available to the Treasury Department, the United States is on this path. At the same time, she did not completely rule out the possibility of a recession in the country.

“This cannot be completely ruled out. But we would expect that with such a stable labor market as it is now, the rate of employment growth will slow down,” she said.

At the end of June on the continued risk of a recession in the US declared Chairman of the Board of Governors of the Federal Reserve System (FRS) Jerome Powell. However, he called such a scenario “less likely.” Current indicators show a “soft landing” for the US economy, Powell said.

June 14 Fed kept base rate at the level of 5-5.25% per annum. The regulator noted the growth of economic activity at a “moderate pace”. Unemployment remains low, while inflation is still elevated. Inflation in the United States in June slowed to 4% in annual terms from 4.9% a month earlier, which was the lowest since May 2021.