Yellen, US Treasury Secretary: "Current Economy Not in Recession... No Signs"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Janet Yellen, U.S. Treasury Secretary, drew a line on the 24th (local time), stating that there are no signs of a recession in the United States. She assessed that even if there is negative growth in the second quarter, it is not a situation to be defined as a recession.

Secretary Yellen appeared on NBC's "Meet the Press" on the same day and said, "Job creation may slow down somewhat," but added, "I do not see that as a recession."

She emphasized, "A recession is when the entire economy becomes vulnerable," and "We are not currently seeing such a situation." She continued, "However, we are in a transition period where growth is slowing down, which is necessary and appropriate."

This statement comes amid growing concerns about a recession due to the Federal Reserve's rapid interest rate hikes to curb recent inflation. Following the U.S. first-quarter gross domestic product (GDP) growth rate recording an annualized -1.6%, there are concerns about the possibility of negative growth in the second quarter as well.

Regarding this, Secretary Yellen said, "Even if there is negative growth for two consecutive quarters, I would be surprised if the National Bureau of Economic Research (NBER), which officially defines recessions, classifies this period as a recession," emphasizing, "We have a strong labor market." She mentioned, "I am not saying we will definitely avoid a recession, but I believe there is a way to maintain a strong labor market and control prices."

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