U.S. Treasury Secretary Janet Yellen said on Sunday that a recession in the country was inevitable.
In an interview with ABC News, Yellen said that she expects the economy to slow.
He added that the economy had grown at a very strong pace following the recovery in the labor market which reached full employment.
So it’s normal when they expect a transition to more stable growth, but a recession is totally inevitable, Yellen said.
While Yellen looks optimistic about avoiding a recession, the economy still faces serious threats in the coming months in the wake of the ongoing war in Ukraine, high inflation and the Covid-19 outbreak. He described inflation as ‘unacceptably high’.
The topic of discussion about the recession is heating up this year as inflation continues to soar and the Federal Reserve (Fed) is taking aggressive steps to address it.
Last week, the Fed announced the largest interest rate hike since 1994 by 75 basis points. Chairman Jerome Powell also said the central bank's intention was to continue aggressive measures in tightening its monetary policy to curb inflation.
Pad the same time, many expect a combination of resilience in consumer spending and job growth to keep the U.S. out of recession.
