"A recession is a broad downturn in our economy that includes massive layoffs, business closures, tensions in household finances and a slowdown in private sector activity," Yellen said in a statement to CNBC International, Friday (29/7/2022). "That's not what we see now... When you look at the economy, job creation continues, household finances remain strong, consumer spending and businesses grow," he added. But Yellen acknowledged the burden of higher prices. US noted Inflation rose to 9.1% in June. "A recession is a broad downturn in our economy that includes massive layoffs, business closures, tensions in household finances and a slowdown in private sector activity," Yellen said in a statement to CNBC International, Friday (29/7/2022). "That's not what we see now... When you look at the economy, job creation continues, household finances remain strong, consumer spending and businesses grow," he added. But Yellen acknowledged the burden of higher prices. US noted Inflation rose to 9.1% in June.
Yellen linked rising inflation to the war in Ukraine, supply chain problems and the Covid-19 pandemic. He said the government was focused on tackling the situation. "We know there are challenges ahead of us. Growth is slowing globally. Inflation remains very high, and it is the government's top priority to bring it down," he said. Previously, the boss of the Federal Reserve (The Fed), Jerome Powell and US President Joe Biden also denied the recession. "We're trying to do it right. We're not 'trying' to create a recession and we don't think we have to... I don't think the US is currently in a recession," Powell told reporters after the Fed's decision to raise the benchmark interest rate by 75 bsp. to 2.25% to 2.5%, quoted by AFP on Wednesday. "We're not going to be in a recession in my view," Biden told reporters, stressing seeing a "soft landing" for the US economy, which is shifting from rapid growth to steady growth.