Reuters warns against government shutdown, asserts no indicators of downturn in US economy
U.S. Treasury Secretary Janet Yellen stated on Monday that she does not see any indicators of an financial downturn in the United States. She emphasized that the labor industry remains powerful and inflation is decreasing. Nonetheless, she warned that if Congress fails to pass legislation to retain the government operating, it could potentially slow the momentum in the economy. Yellen stressed the value of avoiding a government shutdown and the connected dangers for the duration of this period.
Yellen also commented on the current strike by the United Auto Workers against the Detroit 3 U.S. automakers. She stated that it is as well early to decide the influence of the strike, as it depends on its duration and who is impacted. She highlighted President Joe Biden’s commitment to collective bargaining and making sure that workers in the business are also benefiting from its results.
With regards to the labor industry, Yellen pointed out that though it remains powerful, it is cooling down and not as powerful as just before. This is in line with the objective of lowering inflation to two%. Yellen acknowledged that the Federal Reserve’s choice to raise interest prices has began to influence the housing industry, but customer spending remains robust.
Yellen also addressed the challenge of increasing gasoline rates and reassured that the Biden administration is closely monitoring the circumstance. She stated that Biden is committed to making sure that gasoline rates stay very affordable for Americans.
In summary, Yellen sees no indicators of an financial downturn but warns about the prospective slowdown if Congress does not pass legislation to retain the government operating. She emphasized the value of avoiding a government shutdown. Yellen also discussed the influence of the UAW strike, the cooling labor industry, the influence of interest price hikes on the housing industry, and the concentrate on very affordable gasoline rates.
