As the US economy recovered from a six-month contraction, Treasury Secretary Janet Yellen said on Thursday she did not see any indicators of a recession in the near future.

In an interview in Ohio, Yellen stated that the third quarter GDP data, which were released on Thursday, highlighted the strength of the US economy at a time when policymakers are frantically trying to tame widespread and skyrocketing inflation that is endangering the Democratic majorities on Capitol Hill less than two weeks before the midterm elections.

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“Look, what we’re seeing right now is solid growth this quarter. Growth has obviously slowed following a very rapid recovery from high unemployment,” when asked if the most recent GDP figures allayed concerns about a recession, Yellen responded, “We’re at a full employment economy. It’s very natural that growth would slow. And it has over the first three quarters of this year, but it continues to be OK. We have a very strong labor market. I don’t see signs of a recession in this economy at this point.”

Yellen’s optimism was partly based on the most recent data, which showed indications that a necessary slowdown in important economic sectors could pave the way for a “soft landing,” even as the Federal Reserve prepared to continue raising interest rates at a rapid pace. This optimism comes amid growing concern from economists and financial officials that a recession is likely to occur at some point in the coming year.

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According to preliminary figures presented Thursday by the Bureau of Economic Analysis, the largest indicator of economic activity, the gross domestic product, increased at an annualised rate of 2.6% during the third quarter. That represents a turnaround from the year’s first and second quarters, which saw declines of 1.6% and 0.6%, respectively.

The sophisticated balancing act President Joe Biden and his top economic officials have intended over the course of this year as they seek to highlight a swift economic recovery and significant legislative victories while also promising to address skyrocketing prices was also emphasised by Yellen’s standpoint.

When questioned about how the government reconciled their assessment of the US economy with the skyrocketing anger among voters, Yellen responded, “Inflation is very high – it’s unacceptably high and Americans experience that every day.”  Yellen said efforts to lower prices to levels “that people are more accustomed to” will likely last “the next couple of years,” acknowledging that the decline in costs would take time.

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It’s a fact that has thwarted the administration’s attempts to capitalise on what officials perceive to be a strong record. Last week, when questioned about the economy, Biden said that it was “strong as hell,” which drew criticism from Republicans.

Yellen, though, concurred with the President’s assessment that the economy is still doing well compared to other economies around the world.

If you look around the world, there are a lot of economies that are really suffering not only from high inflation but very weak economic performance, and the United States stands out. We have unemployment at a 50-year low. … We saw in this morning’s report – consumer spending and investment spending continued to grow. We have solid household finances, business finances, banks that are well capitalized,” Yellen said.

“This is not an economy that’s in recession and we continue to do well,” she added.

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Yellen also expressed frustration among administration officials over the lack of praise given to the work made to revive the US economy.

“There were several problems that we could have had, and difficulties many families American families could have faced,” she said. “These are problems we don’t have, because of what the Biden administration has done. So, often one doesn’t get credit for problems that don’t exist.”

As part of an administration effort to emphasise the significant legislative victories and the tens of billions of dollars in private sector investment those policies have sparked in manufacturing around the nation, Yellen flew to Cleveland.

It is a vital component of an economic strategy intended to solve many of the flaws and vulnerabilities exposed when Covid-19 wreaked havoc on the world, with large federal expenditures in infrastructure and the strengthening or creation of crucial supply chains from scratch.

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Yellen listed a number of significant investments made by the private sector, including the $20 billion Intel plant that was opened a few hours’ drive outside of Columbus, and claimed they were “real tangible investments happening now,” even though she acknowledged it would take some time for them to fully materialise.

In the months and years to come, Yellen promised that the effects of her initiatives will be seen as they spread across the economy. Yellen responded with a “Yes,” when asked if the administration’s overarching message to Americans was one of patience.

“But you’re beginning to see repaired bridges come online – not in every community, but pretty soon. Many communities are going to see roads improved, bridges repaired that have been falling apart. We’re seeing money flow into research and development, which is really an important source of long term strength to the American economy. And America’s strength is going to increase and we’re going to become a more competitive economy,” she added.

The conflicts over raising the debt ceiling, a continuous Washington issue of its own making that House Republicans have once again promised to use as leverage if they win the majority, were also discussed by Yellen.

“The President and I agree that America should not be held hostage by members of Congress who think it’s alright to compromise the credit rating of the United States and to threaten default on US Treasuries, which are the bedrock of global financial markets,” Yellen claimed.

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Yellen has consistently emphasised the “destructive” nature of the showdowns, but she has also advocated measures that would completely eliminate the debt limit. Biden rejected the proposal last week after a handful of House Democrats wrote to Democratic leaders to ask for that move during the lame-duck session of Congress.

When questioned about the disagreement, Yellen would only say that she and Biden had agreed that raising the debt ceiling is “really up to Congress.”

“It’s utterly essential that it be done, and I’d like to see it occur in the way that it can occur,” she added. 

She stated explicitly that she did not intend to be one of the top officials to quit the administration as it approaches a period when that usually happens. When questioned about rumours that she told the White House she wanted to stay until the following year, Yellen responded that it was “an accurate read.”

“I feel very excited by the program that we talked about,” she said. “And I see in it great strengthening of economic growth and addressing climate change and strengthening American households. And I want to be part of that.”