U.S. Treasury Secretary Janet Yellen has firmly drawn a line on the possibility of an economic recession after slowing inflation.
Asked about the possibility of a recession in an ABC interview on the 6th (local time), Yellen said, "The recession cannot occur at a time when unemployment is at its lowest level in more than 50 years for 500,000 new jobs."
"Inflation is significantly slowing down, and the economy is still strong,"she said. "It is going in a good direction."
Earlier, the U.S. Department of Labor said in its January employment report on the 3rd that non-agricultural jobs increased by 517,000 last month and the unemployment rate was 3.4%, down 0.1% from the previous month. This is the lowest level in nearly 54 years since May 1969.
"Americans are worried about inflation, and calming it is President Joe Biden's top priority," Yellen said. "Prices have been sinking since Biden took office."
"Although prices are still high, they have been on the decline in the past six months, and the Federal Reserve is responding well," she said. "Bills that strengthen the economy and lower prices have also been dealt with." In particular, referring to the Semiconductor Act and the Inflation Reduction Act (IRA), she pointed out, "We are investing again in the United States, rebuilding roads and bridges, investing in high-tech manufacturing, clean energy, and semiconductors, and factories are opening not only on the coast but also across the United States."
Regarding the raising of the debt limit, which Republicans strongly oppose in the majority-controlled House of Representatives, she warned, "The United States has paid all costs on time since 1789, and if it does not, it will cause economic and financial disasters." "All responsible lawmakers must agree to raise the debt ceiling," Yellen said. "This is not an area of negotiation." [Yonhap News]