“I don’t see any signs that the economy is at risk of a recession,” Yellen told CNBC, noting that the U.S. labor market also remains strong and inflation is slowing.
“There is absolutely no reason for a closure,” he said. “Creating … a situation that could cause a loss of momentum is something we don’t need as a risk at this time.”
Yellen said it was premature to gauge the impact of the United Auto Workers’ strike against the Detroit Three automakers, one of the most ambitious U.S. industrial actions in decades, noting that it would depend on its duration and who was affected.
He underscored President Joe Biden’s commitment to collective bargaining and ensuring that workers “get ahead, too,” as the industry has done well.
He said the labor market remained strong but was “not as hot as before,” which is important given the goal of reducing inflation to 2%.
Yellen, the former Federal Reserve chair, said the central bank’s moves to raise interest rates had begun to impact the housing market, but that consumer spending remained “pretty robust.”
He added that the Biden administration is closely monitoring gas prices following recent increases, and that the president is committed to ensuring prices remain affordable for Americans.