U.S. Treasury Secretary Janet Yellen expressed confidence on Monday regarding the United States’ efforts to curb inflation, asserting that the nation was making commendable progress in this endeavor. During an exclusive interview with Bloomberg TV in India, where she attended a meeting of Group of 20 finance officials, Yellen reassured the public that the U.S. economy was not headed for a recession.
Yellen Pushes Back on US Recession Speculation
While addressing the current economic landscape, Yellen acknowledged that China’s decelerating growth could have repercussions on other economies. Nevertheless, she maintained that the U.S. economy was steadfastly following “a good path” towards mitigating inflation while also enjoying a robust labor market.
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“In the United States, our growth rate has slowed down, but our labor market remains remarkably robust. I am not foreseeing any recession in the near future,” Yellen affirmed, citing the recent encouraging inflation data.
During her visit to China earlier in the month, Yellen divulged that Chinese officials had raised grave concerns, particularly with regard to U.S. tariffs. However, she pointed out that the fundamental reasons that prompted Washington to impose these tariffs, such as unfair trade practices, had not yet been adequately addressed.
“We must await the outcome of the four-year tariff review,” Yellen remarked, emphasizing the need to tackle the underlying concerns constructively moving forward.
Regarding the United States’ future actions, Yellen revealed that the country was poised to implement a new executive order aimed at restricting outbound investment in China. However, she reassured that the restrictions would be narrowly focused on three specific sectors: semiconductors, quantum computing, and artificial intelligence.
“The measures would consist of notification requirements and limited prohibitions within these sectors. However, it’s crucial to clarify that these controls will not broadly impact U.S. investments in China,” Yellen clarified.
As the global economy continues to navigate through uncertain waters, Yellen’s optimism regarding the United States’ inflation progress brings a glimmer of hope to the financial community. While the specter of China’s economic slowdown looms, her reassurances about the resilience of the U.S. labor market and her commitment to addressing trade issues provide some stability in these unpredictable times.
The global economic community remains watchful of how events unfold, waiting to witness the outcome of the tariff review and the specific details of the new executive order on China-bound investments. As the U.S. Treasury Secretary’s statements carry considerable weight, they are expected to influence the financial landscape and shape economic policies in the days to come.