US Treasury Secretary downplays the risk of a recession

US Treasury Secretary Janet Yellen said yesterday that the US economy is slowing, but "healthy" employment rates indicate that it has not yet entered a recession.

The minister made these statements in an interview with the "Meet the Press" program on NBC, shortly before the release of a large number of economic reports, this week, which will shed light on the state of the American economy amid the state of inflation and the prospects of higher interest rates, according to The Associated Press.

The economy shrank 1.6 percent in the first quarter from January to March, and the agency says two consecutive negative readings are an unofficial definition of a recession.

The National Bureau of Economic Research defines a recession as “a significant decline in economic activity that is spread throughout the economy and lasts for more than a few months.”

For her part, Yellen said many aspects of the economy remain in good shape, with consumer spending growing and more than 400,000 jobs added per month this year, a significant number.

The unemployment rate is 3.6 percent, which is near its lowest level in half a century.

However, Yellen acknowledged that the economy is "in a transition period of slowing growth", from a historically fast pace in 2021. She said the slowdown is "necessary and appropriate" because we "need to grow at a steady and sustainable pace."

The slowdown in growth could help bring down inflation, which stands at 9.1 percent.

However, many economists believe a recession is looming, as inflation erodes Americans' ability to spend and the Federal Reserve raises interest rates.

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