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• She expects economic growth in the US to be slower
US Treasury Secretary Janet Yellen said on Thursday that the nation’s economy would slow as the Federal Reserve raised interest rates but she did not anticipate a recession.
“I don't think we're (going to) have a recession. Consumer spending is very strong. Investment spending is solid,” she told a New York Times Dealbook event.
She added that she expected economic growth in the US to be slower than the rapid clip of last year’s rebound but said she did see a path to curbing demand without causing a deep contraction, “We want to transition to stable, strong growth.”
The Federal Reserve began raising interest rates aggressively, with another big hike expected next week, as policymakers attempt to combat inflationary pressures without triggering a recession.
The May 3-4 was the biggest rate increase in 22 years and came as the Fed is trying to pull down inflation running at a 40-year high. Market- and survey-based measures of U.S. inflation expectations continued to project a significant deceleration in inflation in the coming years.
Source - New York Times Dealbook
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