AGL 5.40 No Change ▼ 0.00 (0%)
ANL 8.79 No Change ▼ 0.00 (0%)
AVN 76.16 Decreased By ▼ -0.09 (-0.12%)
BOP 5.17 Decreased By ▼ -0.02 (-0.39%)
CNERGY 4.48 No Change ▼ 0.00 (0%)
EFERT 81.10 No Change ▼ 0.00 (0%)
EPCL 49.00 Decreased By ▼ -0.01 (-0.02%)
FCCL 12.70 No Change ▼ 0.00 (0%)
FFL 5.59 Decreased By ▼ -0.03 (-0.53%)
FLYNG 6.98 Increased By ▲ 0.05 (0.72%)
FNEL 4.63 Decreased By ▼ -0.02 (-0.43%)
GGGL 8.59 Decreased By ▼ -0.01 (-0.12%)
GGL 14.06 Decreased By ▼ -0.09 (-0.64%)
HUMNL 5.50 Increased By ▲ 0.01 (0.18%)
KEL 2.60 Increased By ▲ 0.01 (0.39%)
LOTCHEM 27.71 No Change ▼ 0.00 (0%)
MLCF 23.68 Increased By ▲ 0.08 (0.34%)
OGDC 71.45 Decreased By ▼ -0.12 (-0.17%)
PAEL 15.20 No Change ▼ 0.00 (0%)
PIBTL 4.91 No Change ▼ 0.00 (0%)
PRL 15.80 Decreased By ▼ -0.03 (-0.19%)
SILK 1.05 No Change ▼ 0.00 (0%)
TELE 8.99 No Change ▼ 0.00 (0%)
TPL 7.16 No Change ▼ 0.00 (0%)
TPLP 19.22 Increased By ▲ 0.04 (0.21%)
TREET 21.14 No Change ▼ 0.00 (0%)
TRG 136.75 Increased By ▲ 0.25 (0.18%)
UNITY 16.80 Increased By ▲ 0.04 (0.24%)
WAVES 9.10 Decreased By ▼ -0.05 (-0.55%)
WTL 1.37 Decreased By ▼ -0.01 (-0.72%)
BR100 4,186 Increased By 30.5 (0.73%)
BR30 15,467 Increased By 131.3 (0.86%)
KSE100 41,808 Increased By 268.4 (0.65%)
KSE30 15,445 Increased By 79.7 (0.52%)
Follow us

WASHINGTON: US Treasury Secretary Janet Yellen said on Sunday that US economic growth is slowing and acknowledged there was the risk of a recession, but she said a downturn was not inevitable.

Yellen, speaking on NBC’s “Meet the Press”, said strong US hiring numbers and consumer spending showed the US economy is not currently in recession.

US hiring remained robust in June, with 372,000 jobs created and the unemployment rate holding at 3.6%. It was the fourth straight month of job gains in excess of 350,000.

“This is not an economy that is in recession,” said Yellen, who previously chaired the Federal Reserve. “But we’re in a period of transition in which growth is slowing and that’s necessary and appropriate.”

Still, data last week suggested the labor market was softening with new claims for unemployment benefits hitting their highest point in eight months.

Yellen warns of risks to US economy, sees hope to avoid recession

Yellen said that inflation “is way too high” and recent Fed rates hikes were helping to bring soaring prices back in check.

In addition, the Biden administration is selling oil from the Strategic Petroleum Reserve, which Yellen said had already helped lower gas prices.

“We’ve seen gas prices just in recent weeks come down by about 50 cents (a gallon) and there should be more in the pipeline,” she said.

Yellen, a former Fed chief, hopes the central bank can cool the economy enough to bring down prices without triggering a broad economic downturn.

“I’m not saying that we will definitely avoid a recession,” Yellen said. “But I think there is a path that keeps the labor market strong and brings inflation down.”

Yellen says US aims to move ahead with global minimum corporate tax despite setback

US GDP shrank at a 1.6% annual rate in the first quarter, and a report on Thursday is expected to show a gain of just 0.4% in the second quarter, according to economists polled by Reuters.

Yellen said that even if second quarter figure is negative it would not signal that a recession has taken hold, given the strength in the job market and strong demand.

“Recession is broad-based weakness in the economy. We’re not seeing that now,” she said.

Economists have traditionally defined a recession as two consecutive quarters of economic contraction, but the private group deemed to be the official arbiter of US recessions looks at a broad range of indicators.

Comments

Comments are closed.

US economy is slowing, but recession not inevitable, Yellen says

Schools in Lahore to remain closed three days a week due to smog

Rupee registers third successive decline, settles at 224.16 against US dollar

ECP supports use of electronic voting machines: Chief Election Commissioner

IMF programme: Govt remains committed, Dar tells Nong

Oil from Russia: Musadik says there will be no US sanctions

Poor countries’ debt servicing costliest: World Bank

Energy-efficient projects: World Bank ready to extend $300m financing

Battered Pakistan seek livelier pitch in 2nd Test against England

ECC asks Power Division to resolve KE issues

Oil prices slump to pre-Ukraine crisis levels