Skip to content
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

YELLEN DOWNPLAYS RECESSION RISK

“There’s nothing to suggest a recession is in the works” for the U.S. economy, treasury secretary Janet Yellen said in an interview during last week’s New York Times economic forum.

“Of course there’s a recession risk,” she added, “but is it likely? I don’t think so.”

Yellen tried to buffer increasing pessimism about the economy’s future amid 40-year record inflation, rising interest rates, a sagging global economy, and uncertainties hovering over the Ukraine war and Western sanctions against Russia.

“I believe there is a path through this that entails a soft landing,” Yellen said.

The U.S. Federal Reserve has begun a program of interest rate increases throughout this year in an attempt to reduce inflation without triggering a recession—a so-called “soft landing.”

Inflation edged up to 8.6 percent in May from 8.5 in April, busting analysts’ hopes that the rise in prices had eased back to 8.3 percent last month.

TRENDPOST: Believe Janet Yellen? The motto of the Trends Journal is “Think for Yourself.” 

We had long ago forecast stronger inflation in articles such as our Economic and Markets Overview sections in our 27 October, 2020 and 3 November, 2020 issues and documented it through last year in our Markets Overview section on 18 May, 2021, 18 May, 2021, in “Inflation Spreads” (12 Oct 2021) and “Inflation on the Rise” (7 Dec 2021), among a host of other articles.

However, Yellen continued to echo Powell’s assertions of “disinflationary pressures around the globe” early last year, then for several months parroted his assertion that high inflation is “temporary,” then “transitory.”

Like the Fed itself, which she once chaired, Yellen has lost all credibility as an economic seer.

Comments are closed.