US treasury secretary warns of deflation risk in her country

US Treasury Secretary Janet Yellen warned of the risk of a recession in the US as measures taken to slow inflation will weigh on economic activity.

She told CNN that deflation in the US “is a danger that exists when the Federal Reserve tightens its monetary policy in the face of inflation.”

“Obviously we are watching this risk, but we have a strong labor market and I think it can be kept,” she added.

Source: AFP.

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