U.S. Treasury Secretary Janet Yellen confirmed on Monday that the United States is making good progress in addressing inflation and does not anticipate a recession in the U.S. economy. In an interview with Bloomberg TV from India, during a meeting with financial officials from the G20, Yellen mentioned that the slowdown in growth in China could have spillover effects on other economies; however, the U.S. economy is on a "good path" to reducing inflation as the labor market remains strong. She stated, "As for the United States, growth is slowing, but our labor market is still extremely strong. I do not expect a recession... The latest inflation data is very encouraging."
Yellen added that Chinese officials raised serious concerns, especially regarding U.S. tariffs during her visit to China earlier this month, but clarified that the underlying reasons for their implementation have not been addressed, including unfair trade practices. She said, "We need to see the outcome of the review over the four years" of tariff enforcement. She further emphasized, "But I would like to stress that the core concerns have not yet been addressed. We need to work on that in the future." Yellen noted that the United States is likely to proceed with a new executive order restricting foreign investment in China.
