Treasury Secretary Janet Yellen sees a lower risk for the US to fall into recession, suggesting that there may instead be a slowdown in consumer spending to finish the fight against inflation. Jill Disis reports on Bloomberg Television.
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BREAKING: Recession News LEARN MORE ABOUT: Bank Failures REVEALED: Best Investment During Inflation HOW TO INVEST IN GOLD: Gold IRA Investing
Yellen Sees Diminishing Risk of a US Recession Janet Yellen, former Federal Reserve Chair, has expressed optimism about the US economy, saying that the risk of a recession is diminishing. Yellen's comments come at a time when the global economy has been hit hard by the coronavirus pandemic, raising concerns of a global recession. Yellen, who led the Federal Reserve from 2014 to 2018, has been closely monitoring the economic impact of the pandemic. She believes that although the US economy has been severely impacted, the efforts made by both the government and the Federal Reserve have helped to mitigate the damage and prevent a full-blown economic crisis. One of the key factors contributing to Yellen's optimistic outlook is the aggressive response from the Federal Reserve. The central bank has implemented several measures to provide liquidity to the financial markets and support the economy. These include slashing interest rates to near-zero, initiating a massive bond-buying program, and establishing emergency lending facilities to ensure the smooth functioning of credit markets. Yellen also acknowledges the government's efforts in implementing fiscal stimulus measures. The $2.2 trillion CARES Act, approved by Congress and signed into law in March, has provided direct financial aid to individuals, expanded unemployment benefits, and injected funds into small businesses, all of which have helped to offset some of the pandemic's economic impact. Additionally, Yellen points out the resilience and adaptability of the US economy as a contributing factor to her positivity. She believes that the country has the ability to bounce back once the virus is under control and economic activity resumes. However, she remains cautious, emphasizing that the recovery will depend on the successful containment of the virus and the development of a vaccine. Despite her diminishing concern about a US recession, Yellen highlights that significant challenges lie ahead. Some sectors of the economy, such as travel, hospitality, and entertainment, have been severely hit and may take longer to recover. Moreover, the path to economic recovery will also depend on international developments, as the global economy remains interconnected. Yellen's positive outlook aligns with recent economic data that suggests signs of improvement. The US unemployment rate fell to 8.4% in August from its peak of nearly 15% in April. Retail sales have also recovered, and the stock market has rebounded from its lows earlier this year. Nevertheless, Yellen cautions that uncertainties remain, including a potential resurgence of the virus, political uncertainties, and the upcoming presidential election. These factors could still pose risks to the recovery and hamper the progress made so far. In conclusion, Janet Yellen's optimism about the US economy and diminishing risk of recession is a welcome sign amidst the current global uncertainty. Her expertise and experience provide valuable insights into the current economic situation. However, it is important to remain cautious and closely monitor the evolving global landscape, as uncertainties and challenges still lie ahead. https://inflationprotection.org/yellen-perceives-decreasing-probability-of-us-recession/?feed_id=143970&_unique_id=652362c740343 #Inflation #Retirement #GoldIRA #Wealth #Investing #Bloomberg #RecessionNews #Bloomberg
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