US Yellen: "Unemployment Rate at Lowest in Over 50 Years... No Recession Expected"

[Asia Economy New York=Special Correspondent Joselgina] Janet Yellen, U.S. Treasury Secretary, drew a line on the possibility of a recession on the 5th (local time), saying, "The U.S. economy is strong and resilient."

[Image source=AP Yonhap News]

Secretary Yellen appeared on ABC's 'Good Morning America' that day and, when asked about a recession, she stated, "With 500,000 new jobs and the lowest unemployment rate in over 50 years, you don't have a recession."

She said, "What I see is inflation significantly decreasing and the economy still maintaining strength," adding, "The economy remains robust." According to the January employment report released on the 3rd, new jobs in January increased by 517,000, nearly three times the market forecast, and the unemployment rate dropped to 3.4%, the lowest since May 1969.

However, Secretary Yellen also assessed that although recent indicators show inflation noticeably slowing, it is "still at too high a level." She emphasized, "Americans are concerned about inflation, and bringing it down is President Joe Biden's top priority."

She also highlighted the economic achievements of the Biden administration, mentioning the Chips and Science Act (CSA) and the Inflation Reduction Act (IRA), saying, "Investment is returning to the United States."

Secretary Yellen raised her voice regarding the federal government's debt ceiling increase, which the Republican Party opposes. She warned that failure to raise the ceiling would "cause an economic and financial disaster." She continued, "All responsible lawmakers must agree to raise the debt ceiling," asserting, "This is not a matter for negotiation."

The U.S. statutory debt ceiling stands at $31.381 trillion. If the total debt reaches this limit and Congress does not raise or suspend it, it could lead to a default. The U.S. Treasury Department, after reaching the limit last month, has taken special measures to extend the discussion deadline until June 5. However, the Republican Party, which holds the majority in the House of Representatives, continues to demand large-scale government spending cuts as a precondition for raising the debt ceiling, causing ongoing difficulties. The White House also maintains that there will be no negotiations or concessions to the Republicans regarding the debt ceiling increase.