Home » World News » Treasury Sec. Janet Yellen acknowledges economic ‘slowdown’ but downplays recession fears
Treasury Sec. Janet Yellen acknowledges economic ‘slowdown’ but downplays recession fears
Data will soon reveal US ‘met the technical definition of a recession,’ investment expert predicts
Kevin Mahn, president and chief investment officer of Hennion & Walsh Asset Management, notes that the yield curve remains inverted, which has happened prior to every recession in the country dating back to 1955.
Treasury Secretary Janet Yellen acknowledged Sunday that the U.S. is experiencing an economic "slowdown" but downplayed the potential for a recession, arguing that the country is in a period of "transition" following rapid economic growth.
"The economy is slowing down," Yellen said on NBC News’ "Meet the Press," adding that a correction is "appropriate" for a healthy economy.
"The labor market is now extremely strong," she said. "This is not an economy that's in recession, but 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. So there is a slowdown, and businesses can see that and that's appropriate, given that people now have jobs, and we have a strong labor market."
"But 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. "I would say that we're seeing a slowdown."