According to Treasury Secretary Janet Yellen, although acknowledging that “far too high” inflation is putting a burden on the economy, rising consumer spending, industrial output, credit quality, and other economic indicators do not indicate that the economy is in a recession, The Hill reported.
“This is not an economy that is in recession,” Yellen told moderator Chuck Todd on NBC’s Meet the Press.
Following a sharp expansion last year that revived the labor market following the COVID-19 outbreak, businesses and consumers are again witnessing the economy stagnate. But in light of the quick developments, this temporary pause is “essential and reasonable.”
She stated that she anticipates the Biden administration would assist federal measures targeted at reducing inflation in being effective, putting downward pressure on record gas prices, growing food prices, and other economic issue areas for regular Americans.
“We’ve cut the deficit by a record one and a half trillion dollars this year … We’ve seen gas prices just in recent weeks come down by about 50 cents and there should be more in the pipeline. And hopefully, we will pass a bill that will lower prescription drug costs and maintain current levels of health care costs.”
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