US Treasury Secretary Janet Yellen denies economic recession is possible despite record inflation and high gas prices allegedly brought about by the policies of President Joe Biden. She was on ABC's This Week program last Sunday, stressing that fears of a recession after forty years are on the horizon.
Additionally, the economic downturn is nothing as US consumers are paying a lot more, but it's no problem, according to the White House.
Economic Recession Could Come Soon
Yellen stated the labor market has recovered with full employment achieved already, and the nation has stable growth even as inflation increases. She also said that a strong labor market is achievable, despite her contradictory remarks about more people spending even if consumers aren't confident about finances, reported RT.
According to the latest study from the University of Michigan, consumer confidence has nosedived to 50.2 points, the lowest number since the early 1980s stagflation era, cited The Press United.
The Wall Street Journal showed that 44% of economists don't believe the Biden administration's line that a recession is not happening in the near.
While getting interviewed by ABC's George Stephanopoulos, Yellen was reminded that her facts might not be accurate as the president is wrong, saying the rise in inflation is a temporary and economic recession is not happening.
Also, this president and his policies ushered in the worst price hikes due to many mistaken decisions. Yellen agreed that it is record inflation and is here to stay for the year at most.
But unlike other officials, she admits that wayward sanctions are working against the US consumers, making life harder for those financially challenged by spillovers.
Her remarks came after the central bank's newest Federal Reserve interest rate hike to control by lessening the supply of cheap money. But her comment was contested by ex- former Treasury Secretary Larry Summers; he said consumers could suffer before it gets better.
According to the consumer credit bureau Experian, the administration has racked up a debt of $96,371 owed by each American.
US Strategic Petroleum Reserve at Its Lowest
Bloomberg reported last Friday how the US government had been actively selling out of the Strategic Petroleum Reserve (SPR) in the past year to keep energy prices low. It warned the government is making another major mistake by tapping the SPR without replacing it.
During the past year, about 115 million barrels got released to the market, it was record sales of almost a million barrels a day from the middle of May, mentioned CSM Times.
The sale of oil from the SPR is more than the production of medium-sized OPEC states like Algeria and Angola. Collected in the SPR is medium sour crude that is produced by Russia, the Middle East, and Venezuela; another type is light sweet crude in reserve.
Most of the crude sold by the SPR is medium-sour, making up 85% sold from the reserve, which has reduced the supply to a record danger level.
The US Treasury Secretary Janet Yellen says an economic recession is not here. Still, inflation and higher gas prices make the American people think twice about what comes from the Biden administration.
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