[Asia Economy New York=Special Correspondent Joselgina] Janet Yellen, U.S. Treasury Secretary, stated on the 8th (local time) that inflation is easing smoothly, and the United States can avoid a recession.
According to the Treasury Department and major foreign media, Secretary Yellen, after visiting the Bureau of Engraving and Printing (BEP) plant in Fort Worth, Texas, told reporters, "I believe the answer to whether we can avoid a recession is 'yes' (we can avoid it)."
She said, "We believe we are moving in the right direction in terms of lowering inflation," emphasizing that "a recession is not inevitable." As evidence, she cited the recent easing of supply chain bottlenecks and the fact that the so-called wage-price spiral effect, where wage increases drive up prices, has not been confirmed.
Secretary Yellen explained that housing rental prices, which have been cited as a pressure on rising inflation, have peaked and started to decline. She added, "Companies are lowering growth forecasts and scaling back hiring plans," diagnosing that the overheating of the labor market is also cooling down. She evaluated that the movement of the dollar generally reflects fundamentals. However, she refrained from commenting on whether the dollar's value has peaked. Regarding her plans to visit China, she mentioned, "There is no clear plan, but I am definitely open to visiting China."
The United States unveiled dollar bills bearing the signature of Secretary Yellen, the first female Treasury Secretary, on the same day. These bills are expected to be delivered to the Federal Reserve Banks within this month and used starting January next year. The unveiled bills also include the signature of Marilyn Mahlerba, the Treasury's first female Native American official.
Dollar bills bear the signature of the new Treasury Secretary. However, it is customary not to use the new Treasury Secretary's signature on dollar bills when the Treasurer position is vacant. Because of this, bills issued during the Joe Biden administration have continued to bear the signature of Steven Mnuchin, the Treasury Secretary from the Donald Trump administration, instead of Secretary Yellen's signature.
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