Yellen Sees Lower Recession Risks, But Consumer Spending Needs To Slow To Bring Inflation Down

US Treasury Secretary Yellen has stated that US recession odds are lower. She stated during a Bloomberg interview: "my odds of it, if anything, have gone down — because look at the resilience of the US economy the labor market, and inflation is coming down." She added that “I’m not going to say it’s not a risk, because the Fed is tightening policy,”, while adding "“We probably need to see some slowdown in spending in order to get inflation” under control.

• She stated core inflation is "quite high".
• She also noted now is not the time to debate the 2% inflation target. She noted “We could have lovely debate for what the inflation target would be,” Yellen said. “But this is not the time for that debate.”