Reuters warns in opposition to authorities shutdown, asserts no indicators of downturn in US financial system

U.S. Treasury Secretary Janet Yellen acknowledged on Monday that she doesn’t see any indicators of an financial downturn in america. She emphasised that the labor market stays sturdy and inflation is lowering. Nevertheless, she warned that if Congress fails to move laws to maintain the federal government operating, it might doubtlessly gradual the momentum within the financial system. Yellen burdened the significance of avoiding a authorities shutdown and the related dangers throughout this era.

Yellen additionally commented on the latest strike by the United Auto Staff in opposition to the Detroit Three U.S. automakers. She acknowledged that it’s too early to find out the affect of the strike, because it depends upon its length and who’s affected. She highlighted President Joe Biden’s dedication to collective bargaining and guaranteeing that staff within the trade are additionally benefiting from its success.

Relating to the labor market, Yellen talked about that though it stays sturdy, it’s cooling down and never as sturdy as earlier than. That is in step with the target of decreasing inflation to 2%. Yellen acknowledged that the Federal Reserve’s resolution to lift rates of interest has began to affect the housing market, however client spending stays sturdy.

Yellen additionally addressed the problem of rising gasoline costs and reassured that the Biden administration is intently monitoring the scenario. She acknowledged that Biden is dedicated to making sure that gasoline costs stay reasonably priced for Individuals.

In abstract, Yellen sees no indicators of an financial downturn however warns in regards to the potential slowdown if Congress doesn’t move laws to maintain the federal government operating. She emphasised the significance of avoiding a authorities shutdown. Yellen additionally mentioned the affect of the UAW strike, the cooling labor market, the affect of rate of interest hikes on the housing market, and the give attention to reasonably priced gasoline costs.