USAon the one hand high inflation and on the other FED‘s aggressive to interest rate hikes Concerns about the economic outlook are rising.
While some economists state that the USA is already in a recession, some economists think that recession risks have increased and if inflation cannot be brought under control, the slowdown in economic activity may affect many sectors.
US recession risks speaking about Treasury Secretary Janet Yellen He said they don’t see any signs in that direction at the moment.
Stating that she supports the FED’s fight against inflation and that she has full confidence, Yellen said the following about recession risks:
“We are likely to see a slowdown in employment growth. I don’t think it’s a recession. A recession means widespread weakness in the economy. We do not currently observe anything like this.
The Fed’s task is to implement policies that will keep inflation down. I expect them to be successful in this.
Even if there has been negative growth for two consecutive quarters, I don’t think NBER (National Bureau of Economic Research) will call this a recession. We have a very strong employment market. If you are creating 400,000 new jobs a month, you cannot call it a recession.”
While a 75 basis point rate hike is expected from the FED this week, eyes are turned to Wednesday.