The head of the US Treasury announced the transitional state of the American economy

The US economy has entered a new phase of recovery aimed at achieving sustainable, stable growth, said the head of the US Treasury .webp 673w” type=”image/webp” media=”(max-width: 320px) and (min-resolution: 192dpi)” >v6_top_pics/resized/320xH/media/img/3/01/756590427990013.webp 320w” type=”image/webp” media=”(max-width: 320px)” >< source srcset=" 590w" type="image/webp" >

The US economy is in in a transitional state and not in a recession, despite two consecutive quarters of decline. This was stated by US Treasury Secretary Janet Yellen, CNBC reports.

She stressed that the recession— it is a “widespread economic slowdown” that includes major layoffs, plant closures, household financial problems, and a slowdown in private sector activity. “That's not what we're seeing right now,” — she emphasized during the press conference.

The comments came on the same day that the US Department of Commerce Bureau of Economic Analysis reported that GDP fell 0.9% in the second quarter, CNBC notes.

“We have entered a new phase of our recovery aimed at achieving a sustainable , stable growth without prejudice to the results of the last 18 months,— Yellen said.

She acknowledged the challenges ahead for US authorities as economic growth slows around the world and inflation remains “unacceptably high.” The main task of the current administration is to reduce it,” Yellen emphasized.

Late last week, Yellen acknowledged that US economic growth is slowing down. Nevertheless, then she also did not see signs of a recession.

Such a slowdown is “necessary”, the head of the Ministry of Finance believes.

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At the same time, she pointed out that inflation is “too high”. She recalled that the Federal Reserve System (Fed), acting as the central bank, recently raised the key rate, which should help contain price increases.

“I'm not saying that we we will definitely avoid a recession,— Yellen stressed.

Russian Foreign Ministry spokeswoman Maria Zakharova, commenting on Yellen's words about the economic slowdown, wrote in Telegram: “Many in 1924 were sure that Lenin did not die, but simply fell asleep until better times.”

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