WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen said on Monday the United States was making good progress in bringing inflation down and she did not expect the U.S. economy to enter into a recession.
Yellen, speaking to Bloomberg TV from India during a meeting of Group of 20 finance officials, said slower growth in China could spill over to other economies, but the U.S. economy was on “a good path” to reducing inflation while the labor market remained strong.
“For the United States, growth has slowed, but our labor market continues to be quite strong. I don’t expect a recession,” Yellen said. “The most recent inflation data were quite encouraging.”
Yellen said Chinese officials raised serious concerns, especially about U.S. tariffs, during her visit earlier this month, but the underlying reasons that Washington implemented them in the first place, including unfair trade practices, had not been addressed.
“We have to see what comes out of the four-year review” of tariffs, Yellen said, adding, “But I would emphasize that really the underlying concerns have not yet been addressed. And we need to work on that going forward.”
Yellen said the United States was likely to proceed with a new executive order restricting outbound investment in China, but stressed that these would focus narrowly on three sectors – semiconductors, quantum computing and artificial intelligence.
“They would contain a combination of notification requirements, and in a very narrowly scoped portion of these sectors, prohibitions, but these would not be broad controls that would affect U.S. investment broadly in China,” she said.
Source: Economy - investing.com
