TREASURY Secretary Janet Yellen warned that the United States is not yet out of the possibility of an economic recession.
Yellen in an interview with an American Broadcast Network said it’s appropriate and normal for growth to be moderate.
Just recently, according to a report, the economy only added 209,000 jobs in June, the weakest since December 2020.
The unemployment rate slightly decreased from 3.7 percent in May to 3.6 percent in the same month, however, the added jobs were fewer than in previous months.
Meanwhile, even though it began to ease, inflation was still high after prices rose 4 percent year-over-year in May.
This is still double the 2 percent target of the US Federal Reserve.
Taking this into account, Yellen pointed out that the inflation is too high and did not rule out a potential recession.
In a statement, she said,
“We have a healthy economy, a great labor market, inflation too high and a concern of ours and the American people, but coming down over time,” Janet Yellen, United States Secretary of Treasury said.
Last week, the Central Bank also warned that a recession this year is ‘quite likely’ but probably won’t be ‘deep’ or ‘prolonged.’
Meanwhile, the Bank of America on Tuesday agreed to pay 250 million U.S. dollars in fines as well as compensation to settle claims that it systematically double-charged customers fees.
The bank also reportedly withheld promised credit card perks and opened accounts without the authorization of customers.
The said bank agreed to pay 100 million U.S. dollars in restitution to harmed consumers.
Another 150 million U.S. dollars will be paid for civil penalties after the Consumer Financial Protection Bureau and The Office of the Comptroller of the Currency said Bank of America violated numerous laws starting in 2012.
