Yellen: Inflation will slow in coming months

While the USA Treasury Secretary Janet Yellen gave optimistic messages about inflation, she also supported US President Joe Biden's views on recession.

Yellen told ABC that inflation in the US is unacceptably high, partly due to the Russia-Ukraine war. Emphasizing that inflation in the USA is affected not by local but by global developments, Yellen stated that the rate of inflation will decrease in the coming months.

Yellen stated that consumer spending on economic activity remains strong, and that a recession in the country is not inevitable.

Yellen also touched upon the recent Chinese tariffs. Secretary Yellen said the recipes from the previous President Donald Trump era serve no strategic purpose.

Biden: Recession is preventable

While inflation in the USA, which is at peak levels in 40 years, and the aggressive tightening cycle initiated by the Fed to combat inflation, increased recession concerns in the country, US President Joe Biden said that a recession was not inevitable.

In an interview with the AP last week, Biden stated that Treasury Secretary Janet Yellen and other advisers stated that the plan to combat the economic effects of the epidemic, which was adopted 15 months ago, may have a marginal effect on inflation, but that he did not think so.

Biden has often said in an interview that the alternative to this plan is deeper economic disruption and a heavier recovery.

"Yellen said the package could have a marginal effect on inflation. You can argue whether the package has marginal, secondary effects on inflation. I don't think it has any effect. Many economists don't think it has either. But the idea that the package creates inflation is weird," Biden said.

Recession concerns in the US began to rise after the Fed's steepest rate hike in 28 years.

Wall Street institutions are of the opinion that the tightening process will have a negative impact on economic activity.

Wells Fargo predicted a moderate recession by mid-2023. The bank stated that inflation will reduce the purchasing power of consumers and the Fed will take steps to combat inflation, thus pushing the economy into recession.