{"id":1570227,"date":"2022-07-25T16:06:58","date_gmt":"2022-07-25T20:06:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1570227"},"modified":"2022-07-25T16:07:03","modified_gmt":"2022-07-25T20:07:03","slug":"yellen-were-not-in-a-recession-were-in-a-transition-in-which-growth-is-slowing","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-were-not-in-a-recession-were-in-a-transition-in-which-growth-is-slowing\/","title":{"rendered":"Yellen: We\u2019re Not In A \u2018Recession,\u2019 We\u2019re In A \u2018Transition In Which Growth Is Slowing\u2019"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fyellen-were-not-in-a-recession-were-in-a-transition-in-which-growth-is-slowing%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1570227&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Treasury Secretary <a href=\"http:\/\/dailywire.com\/topic\/janet-yellen\">Janet Yellen<\/a> claimed that the United States <a href=\"http:\/\/dailywire.com\/topic\/economy\">economy<\/a> is not in a <a href=\"http:\/\/dailywire.com\/topic\/recession\">recession<\/a>\u00a0but rather a \u201cperiod of transition in which growth is slowing.\u201d<\/p>\n<p>When pressed by NBC host Chuck Todd over the weekend, Yellen <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2022\/07\/24\/icymi-treasury-secretary-yellen-says-us-economy-not-in-recession\/\">said<\/a> that \u201cgrowth is slowing\u201d \u2014 even though output appears to be turning negative for a sustained period of time. The remarks come ahead of the Bureau of Economic Analysis <a href=\"https:\/\/www.bea.gov\/news\/schedule\">publishing<\/a> an advanced estimate of second quarter Gross Domestic Product (GDP) growth later this week \u2014 a reading that is expected to show that the economy <a href=\"https:\/\/www.atlantafed.org\/cqer\/research\/gdpnow\">shrank<\/a> at a 1.6% annualized pace from April to June.<\/p>\n<p>Because the economy likewise <a href=\"https:\/\/www.dailywire.com\/news\/united-states-economy-shrinks-in-the-first-part-of-2022\">contracted<\/a> at a 1.5% rate in the first quarter, the United States may have experienced two consecutive quarters of negative growth \u2014 meeting the <a href=\"https:\/\/cals.ncsu.edu\/news\/you-decide-are-we-already-in-a-recession\/#:~:text=There%20is%2C%20however%2C%20a%20%E2%80%9C,%2C%20that%20is%2C%20six%20months.\">rule-of-thumb definition<\/a> for a recession. Yellen \u2014 who <a href=\"https:\/\/www.dailywire.com\/news\/janet-yellen-admits-she-was-wrong-about-inflation-being-small-risk\">admitted<\/a> last month that she was \u201cwrong\u201d about the \u201cpath that inflation would take\u201d \u2014 dismissed such claims.<\/p>\n<p>\u201cThis is not an economy that\u2019s in recession,\u201d she told Todd. \u201cBut we\u2019re in a period of transition in which growth is slowing and that\u2019s necessary and appropriate and we need to be growing at a steady and sustainable pace. So there is a slowdown and businesses can see that and that\u2019s appropriate, given that people now have jobs and we have a strong labor market.\u201d<\/p>\n<p>Yellen also pointed to low joblessness as an indicator of strong economic performance. Although unemployment remains at 3.6% \u2014 a significant improvement from the 14.7% level <a href=\"https:\/\/fred.stlouisfed.org\/series\/UNRATE\">seen<\/a> in April 2020 \u2014 labor force participation has not recovered from pre-recession levels, contributing to <a href=\"https:\/\/www.dailywire.com\/news\/americans-continue-to-opt-out-of-the-workforce\">worker shortages<\/a> that increase expenses for businesses and prices for consumers.<\/p>\n<p>Arguing that \u201cyou don\u2019t see any of the signs\u201d of a broad-based economic contraction, Yellen referred to \u201csolid\u201d consumer spending figures. Although a report from the Department of Commerce shows that <a href=\"https:\/\/www.dailywire.com\/news\/retail-sales-surge-faster-than-expected-as-inflation-rattles-economy\">national retail sales<\/a> grew by 1% last month, the Consumer Price Index (CPI) rose 1.3% over the same period \u2014 implying that higher price levels played a significant role in the higher spending rather than true gains in economic activity.<\/p>\n<p>Indeed, the White House \u2014 which <a href=\"https:\/\/www.dailywire.com\/news\/white-house-again-claims-u-s-stronger-economically-than-we-have-been-in-history\">repeatedly insisted<\/a> in recent weeks that the nation is \u201cstronger economically than we have been in history\u201d \u2014 has been laying out its economic case ahead of the Bureau of Economic Analysis growth report.<\/p>\n<p>\u201cWhile some maintain that two consecutive quarters of falling real GDP constitute a recession, that is neither the official definition nor the way economists evaluate the state of the business cycle,\u201d the White House said in a Thursday <a href=\"https:\/\/www.whitehouse.gov\/cea\/written-materials\/2022\/07\/21\/how-do-economists-determine-whether-the-economy-is-in-a-recession\/\">blog post<\/a>. \u201cInstead, both official determinations of recessions and economists\u2019 assessment of economic activity are based on a holistic look at the data \u2014 including the labor market, consumer and business spending, industrial production, and incomes. Based on these data, it is unlikely that the decline in GDP in the first quarter of this year \u2014 even if followed by another GDP decline in the second quarter \u2014 indicates a recession.\u201d<\/p>\n<p>As President Joe Biden\u2019s approval rating continues to plummet, news of a recession would serve to worsen Democrats\u2019 chances in the upcoming midterm elections. CNBC\u2019s All-America Economic Survey, for example, recently <a href=\"https:\/\/www.dailywire.com\/news\/bidens-economic-approval-is-now-double-digits-lower-than-trumps-worst-rating\">showed<\/a> a meager 30% of Americans approving of Biden\u2019s economic performance, and Republicans are <a href=\"https:\/\/www.dailywire.com\/news\/new-polling-cnn-analysis-spells-disaster-for-democrats-in-midterm-elections\">positioned<\/a> to gain up to 70 seats in the House of Representatives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Secretary Janet Yellen claimed that the United States economy is not in a recession\u00a0but rather a \u201cperiod of transition in which growth is slowing.\u201d When pressed by NBC host Chuck Todd over the weekend, Yellen said that \u201cgrowth is slowing\u201d \u2014 even though output appears to be turning negative for a sustained period of &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1524041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1570227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1570227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1570227"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1570227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1524041"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1570227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1570227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1570227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}