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For: EFE Updated 22 May 2022, 13: 40 pm EDT
The United States government recognized that there is a “risk” of recession amid high inflation that the country is experiencing and stressed that the economy is in a period of “transition” after the impact of the pandemic.
This was stated by the director of the National Economic Council of the White House, Brian Deese, in an interview on the CNN television network.
“Our economy is in transition from what has been the strongest recovery in modern US history . to what can be a period of more stable and resistant growth that works better for families”, he pointed out.
Regarding the possibility of a recession, Deese acknowledged that “there are always risks” given the global challenges and the monetary measures adopted to face the high rate of inflation in the US, the highest since the beginning of the decade 1980.
The Federal Reserve (Fed), the US central bank, maintained for two years the interest rates in the range between 0% and 0.25 % to stimulate the economy; but it has already approved so far 2022 two consecutive increases to contain the price boom.
Thus, the official interest rate of the world’s largest economy is now within a range of 0.75 % and 1%, and additional increases in the price of money in the US are expected.
In this sense, Deese insisted that it is necessary to give the Fed “independence” to do its job , noting that “it has the tools to combat inflation”.
According to data from the Department of Commerce, inflation in the United States remains at historical levels not seen for forty years, although it moderated slightly in April when standing at 8.3%, two tenths less than in March.
Meanwhile, unemployment stood in April in the US at 3.6% of the labor force, the highest low in two years.
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