Janet Yellen Claims U.S. Economy ‘Is Not in a Recession’
'Look, the economy is slowing down'
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Treasury Secretary Janet Yellen has claimed the United States economy is "not in recession.”
During NBC’s “Meet the Press” Yellen pushed back against sharp indicators showing otherwsie.
Anchor Chuck Todd asked:
“Many businesses are preparing for a recession."
"Should folks at home prepare for a recession that seems to many likely?”
Yellen said:
“Look, the economy is slowing down."
"Last year it grew very rapidly at about 5.5%, and that succeeded in putting people back to work who had lost their jobs during the pandemic."
WATCH:
Treasury Secretary Janet Yellen: "A common definition of recession is two negative quarters of GDP growth”
— RNC Research (@RNCResearch) July 24, 2022
“Many economists expect second quarter GDP to be negative. First quarter GDP was negative.” pic.twitter.com/UsKdYCGdEj
"The labor market is now extremely strong,"she added.
"Even just during the last three months, net job gains averaged 375,000.”
She added:
“This is not an economy that’s in recession, but we’re in a period of transition in which growth is slowing."
"That’s necessary and appropriate, and we need to be growing at a steady and sustainable pace."
"So there is a slowdown, and businesses can see that and that’s appropriate given that people now have jobs and we have a strong labor market," she said.
"But you don’t see any of the signs now."
"A recession is a broad-based contraction that affects many sectors of these economies."
"We just don’t have that."
"Consumer spending remains solid."
"It’s continuing to grow."
"Industrial output has grown in five of the six most recent months.”
