Citing the US Treasury Secretary, the US rapid economic growth has come to a halt. The US economy is going through a transitional period that should not be confused with a recession.
On July 25, Janet Yellen confirmed a slowdown in the national economy. At the same time, the policymaker pointed out that a broad range of upbeat economic data does not signal any recession. She added: “We’re in a period of transition in which growth is slowing and that’s necessary and appropriate and we need to be growing at a steady and sustainable pace.”
Janet Yellen reminded the interviewer that the US economy grew rapidly in 2021 at an annual rate of about 5.5%. Amid the economic recovery, Americans, who had lost their jobs during the COVID pandemic, went back to work again. From her viewpoint, strong employment and rising consumer spending prove that it is premature to acknowledge a recession in the US. “You don’t see any of the signs now — a recession is a broad-based contraction that affects many sectors of the economy—we just don’t have that,” she added.
Earlier, the Treasury Secretary welcomed the cooperation between the US and Western countries. From her viewpoint, if allies who share the same political and economic principles and values team up, they will make determined joint efforts against those countries that breach the international economic order.
