U.S. Treasury Secretary Janet Yellen speaks about “Next Steps in the Evolution of Development Finance” at the Center for Strategic and International Studies (CSIS) in Washington, U.S., on February 9, 2023.REUTERS/Leah Millis/File Photo Obtaining license rights
WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen said on Monday there was no sign of the U.S. economy entering a downturn, but economic momentum would slow if Congress fails to pass legislation to keep the government afloat. warned of the risks.
“There are no signs that the economy is at risk of downside,” Yellen told CNBC, noting that the U.S. labor market remains strong and inflation is falling.
“There’s absolutely no reason to close,” she said. “Creating a situation that could cause a loss of momentum is not a necessary risk at this time.”
Yellen said it was too early to gauge the impact of the United Auto Workers strike against three Detroit automakers, one of the most ambitious U.S. industrial labor actions in decades, and how long it would last. He pointed out that it depends on who is affected.
He highlighted President Joe Biden’s commitment to collective bargaining and ensuring that workers “come forward as well” as the industry was doing well.
He said the labor market remained strong but had cooled and was “not as hot as it used to be”, which was important given the goal of getting inflation back to 2%.
Former Federal Reserve Chair Janet Yellen said that while the central bank’s interest rate hikes are starting to impact the housing market, consumer spending remains “very strong.”
He said the Biden administration is closely monitoring the recent spike in gas prices and that Biden is committed to keeping prices affordable for Americans.
Reporting by Andrea Shalal and Doina Chiacu.Editing: Mark Porter and Andrea Ricci
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