A Recession Is ‘Not Completely Off the Table,’ Warns Treasury Secretary Janet Yellen
The Treasury Secretary shared her thoughts after a disappointing June jobs report.
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We’re not out of the recession woods yet, according to Treasury Secretary Janet Yellen.
While appearing on CBS’s , Yellen said a recession is “not completely off the table” following the weakest jobs report since December 2020. However, she said a decline in the labor market was to be expected.
, U.S. employers added 209,000 jobs, more than 100,000 less than May’s reported addition of 339,000 jobs, per .
RELATED: What Is a Recession and How Do You Prepare for One?
Although this decline seems to spell bad news, Yellen says it’s a reflection of the country’s strong rebound after the Covid-19 pandemic.
“When the pandemic struck, there was huge job loss and a contraction in our economy. And as recovery took place, due to President Biden’s economic policies and success with our vaccination effort, there was a very rapid, dramatic rebound, [and] the labor market recovered,” Yellen said in the interview, adding, “And now growth has slowed somewhat back to more normal levels.”
RELATED: 3 Key Strategies That Helped My Business Grow During a Recession
With the monthly jobs gains returning to normal levels, Yellen said, “It’s my hope that, and belief, that there is a path to bring inflation down in the context of a healthy labor market, and the data that I’ve seen suggests we’re on that path,” per .
We’re not out of the recession woods yet, according to Treasury Secretary Janet Yellen.
While appearing on CBS’s , Yellen said a recession is “not completely off the table” following the weakest jobs report since December 2020. However, she said a decline in the labor market was to be expected.
, U.S. employers added 209,000 jobs, more than 100,000 less than May’s reported addition of 339,000 jobs, per .
RELATED: What Is a Recession and How Do You Prepare for One?
Although this decline seems to spell bad news, Yellen says it’s a reflection of the country’s strong rebound after the Covid-19 pandemic.
“When the pandemic struck, there was huge job loss and a contraction in our economy. And as recovery took place, due to President Biden’s economic policies and success with our vaccination effort, there was a very rapid, dramatic rebound, [and] the labor market recovered,” Yellen said in the interview, adding, “And now growth has slowed somewhat back to more normal levels.”
RELATED: 3 Key Strategies That Helped My Business Grow During a Recession
With the monthly jobs gains returning to normal levels, Yellen said, “It’s my hope that, and belief, that there is a path to bring inflation down in the context of a healthy labor market, and the data that I’ve seen suggests we’re on that path,” per .
