But Federal Reserve data from Q1 and Q2 show U.S. economy technically already in a recession.
Posted BY: Wyatt T | NwoReport
Biden Treasury Secretary Janet Yellen rejected the idea that “recession is inevitable” and claimed the economy has been “growing at a very rapid rate” despite it contracting in the last quarter.
“I expect the economy to slow,” Yellen admitted to George Stephanopoulos Sunday on ABC’s “This Week.”
“It’s been growing at a very rapid rate…The labor market has recovered, and we have reached full employment.”
“It’s natural now that we expect a transition to steady and stable growth,” Yellen added.
Yellen said Joe Biden and Fed Chair Jerome Powell’s top priority is to bring down inflation without triggering a recession.
“That’s going to take skill and work,” she said. “But I believe it’s possible. I don’t think recession is inevitable.”
But the U.S. economy contracted by 1.4% in the first quarter of 2022, and the Atlanta Fed’s forecast for GDP growth in the second quarter is 0.0%, meaning the economy is technically now in a recession.
Yellen also claimed the record-high inflation is a result of the Russia-Ukraine conflict “boosting prices” rather than the Federal Reserve printing $6 trillion out of thin air since the COVID crisis began.
“Part of the reason [for inflation] is Russia’s war on Ukraine has boosted energy and food prices in the United States and globally,” Yellen said.
“I do expect the pace of inflation is likely to come down, though remember, there are so many uncertainties relating to global developments,” she cautioned, adding that high inflation is probably “locked in” for the rest of 2022.
This comes after Yellen finally admitted earlier this month that she was wrong for characterizing inflation being a “transitory” phenomenon over the last year.