Reuters warns towards authorities shutdown, asserts no indicators of downturn in US economic system

U.S. Treasury Secretary Janet Yellen acknowledged on Monday that she doesn’t see any indicators of an financial downturn in america. She emphasised that the labor market stays robust and inflation is reducing. Nevertheless, she warned that if Congress fails to move laws to maintain the federal government operating, it may probably sluggish the momentum within the economic system. Yellen confused the significance of avoiding a authorities shutdown and the related dangers throughout this era.

Yellen additionally commented on the current strike by the United Auto Employees towards the Detroit Three U.S. automakers. She acknowledged that it’s too early to find out the impression of the strike, because it will depend on its period and who’s affected. She highlighted President Joe Biden’s dedication to collective bargaining and guaranteeing that staff within the business are additionally benefiting from its success.

Relating to the labor market, Yellen talked about that though it stays robust, it’s cooling down and never as robust as earlier than. That is according to the target of reducing inflation to 2%. Yellen acknowledged that the Federal Reserve’s resolution to boost rates of interest has began to impression the housing market, however client spending stays strong.

Yellen additionally addressed the difficulty of rising gasoline costs and reassured that the Biden administration is carefully monitoring the state of affairs. She acknowledged that Biden is dedicated to making sure that gasoline costs stay reasonably priced for People.

In abstract, Yellen sees no indicators of an financial downturn however warns in regards to the potential slowdown if Congress doesn’t move laws to maintain the federal government operating. She emphasised the significance of avoiding a authorities shutdown. Yellen additionally mentioned the impression of the UAW strike, the cooling labor market, the affect of rate of interest hikes on the housing market, and the deal with reasonably priced gasoline costs.