(New York) A recession in the United States is unlikely, but the risk exists, according to Janet Yellen, the US Treasury Secretary, who also ventured into the field of pop culture thanks to a question about the rapper Cardi B, this one anticipating a recession.
Posted at 6:15 p.m.
“There is a risk of recession,” Joe Biden’s Minister of Economy and Finance said Thursday at an event organized by the New York Timesas fears mount over the monetary policy measures needed to curb inflation.
But to the question “is it likely?” she replied “I don’t think so”.
Many observers are worried about a recession, as the US central bank (Fed) tightens its monetary conditions vigorously in order to slow demand and therefore lower the inflation rate.
However, “no element indicates that a recession is preparing”, estimated Janet Yellen, judging possible a “soft landing”, that is to say to slow down inflation without plunging the economy into recession nor weigh too heavily on employment.
The Treasury Secretary was also asked about American rapper Cardi B, who wondered on Twitter on Sunday when the plunge of the economy into recession would be announced.
“I don’t have a lot of time for her, but I know her,” replied the minister.
Inflation figures for May will be published on Friday and should still be very high, but could show that the slowdown started has continued.
In April, the rise in prices had indeed decelerated, but, at +8.3% over one year, had remained very close to its highest in 40 years, observed in March, with +8.5%.
To curb this inflation, the American central bank raises its rates, in order to slow down consumption and investment. It has already raised them twice, and they are now in a range of 0.75 to 1.00%.
And it should proceed to a new turn of the screw, probably half a percentage point, Wednesday at the next meeting of its monetary committee.