The fears increase by seeing the world’s largest economy sink into recession, at a time when the Federal Reservecentral bank of the United States (Fed) tighten monetary conditions with force in order to curb demand and lower the inflation.
However, “no element indicates that a recession is coming,” Yellen estimated, judging that a “soft landing“That is, getting inflation to slow down without sending the economy into recession or weighing too heavily on employment.
The Treasury secretary was also questioned about American rapper Cardi B, who wondered on Twitter on Sunday when the economy’s plunge into recession would be announced.
“I don’t have much time for her, but I know her,” Yellen replied.
The figures of the may inflation will be published on Friday and are expected to be even higher, although they could show that their deceleration it keeps.
In aprilthe rise of prices had indeed slowed down, but with 8.3% in 12 months, it had dropped very close to its highest level in 40 years, the 8.5%Registered in March.
To try to deal with inflation, the Fed has twice raised its interest rates of reference to curb consumption and investment. And these rates are now in the range between .75 to 1.%.
The Fed is expected to continue to hike half a percentage point on Wednesday during the next monetary policy committee meeting.
With information from Reuters and AFP
