US Treasury Secretary says recession not inevitable, CEOs say it’s on the way • The Georgia Virtue

(The Center Square) – US Treasury Secretary Janet Yellen says a recession is not inevitable, comments that have been met with skepticism by business leaders.

In a interview With ABC’s “This Week,” Yellen said she believes a recession isn’t certain.

“I expect the economy to slow down,” Yellen said. “I don’t think a recession is inevitable.”

This stands in stark contrast to what most business leaders predict.

According to a new research report According to The Conference Board, a nonprofit business membership and research group, more than 60% of CEOs worldwide expect a recession in their respective regions of operation.

Another 15% say they are already in the middle of a recession.

Consumers, too, doubt the coming economy.

A Federal Reserve Bank of New York investigation found that 28.6% of consumers say they are “a little worse off” in May 2022 than a year ago. Another 10.8% said they were “much worse off”.

Critics also pointed out that Yellen previously claimed inflation was “transitional” before later admitting she was wrong.

“Why would anyone believe Yellen’s claim that the US will ‘avoid’ a recession?” U.S. Representative Lance Gooden, R-Texas, wrote on Twitter in response to Yellen’s comments.

Higher inflation rates and worries about the future of the economy coincide with the Federal Reserve’s plan to adopt aggressive monetary policy in an attempt to rein in high inflation rates by raising interest rates .

Jerome Powell, Chairman of the Federal Reserve, said that interest rates should continue to rise after an initial increase of 0.75%.

“The current situation is obvious, the labor market is extremely tight and inflation is way too high, Powell said. “Against this backdrop, today the Federal Open Market Committee raised its interest rate by three-quarters of a percentage point and expects continued interest rate increases to be appropriate.”

By Richie Malouf | The central square

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