Yellen: No Signs of Crisis in US Economy

U.S. Treasury Secretary Janet Yellen said she didn’t see any signs that the U.S. economy is entering a downturn. U.S. Treasury Secretary Janet Yellen said she didn’t see any signs that the U.S. economy is entering a downturn. However, Yellen warned that Congress’s failure to pass legislation to keep the government afloat risks slowing the economy’s momentum. “I don’t see any signs that the economy is at risk of a downturn,” Yellen told CNBC, noting that the U.S. labor market remains strong and inflation is falling. Yellen said it was too early to measure the impact of the United Auto Workers’ strike against three U.S. automakers in Detroit, one of the most ambitious industrial labor actions in decades, saying it depended on how long it lasts and who is affected. Underlining President Joe Biden's determination to ensure workers also benefit from collective bargaining and the industry doing well, Yellen said the labor market remains strong but has cooled and is not as hot as before, which is important given the goal of reducing inflation to 2 percent.