Yellen: U.S. is on the right track and can avoid recession

U.S. Treasury Secretary Janet Yellen believes that the U.S. economy can avoid a recession. On Thursday, she said that the currently missing wage-price spiral and the loosening of supply chain bottlenecks could contribute to this.

Yellen added that she does not consider a recession to be something inevitable. For example, home rental prices came to their peak and then began to fall.

The politician said that the American labor market is gradually reducing its level of overheating. Although companies' expectations for growth have decreased, as well as plans to hire new staff, there are no significant staff cuts.

According to Yellen, the way to reduce inflation has been chosen correctly, so we should not say that a recession is inevitable.

She also believes that the recent fluctuations in the value of the U.S. currency largely reflected the underlying factors. Nevertheless, Yellen did not give her forecasts on whether the dollar had reached its maximum against other currencies.