Biden Treasury Secretary Janet Yellen said on Sunday that the US economy was “slowing” but said the data did not herald a recession.
“I’m not saying that we will definitively avoid a recession, but I think there is a way to maintain the strength of the labor market and lower inflation,” he said.
GDP growth in the United States in the second quarter will be known on Thursday and a slight increase is expected, after a negative first quarter (a contraction of 1.6% in annual projection, the preferred measure in the country, which projects growth to 12 months under the conditions at the time of the study).
If a contraction were to occur, the US would technically be in a recession, posting two quarters in negative territory.
But for Yellen, a recession “is a generalized contraction of the economy. And even if (the GDP for the second quarter shows figures) negative, we will not be in a recession today,” she insisted.
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