US Treasury’s Yellen thinks the Fed can reduce inflation without triggering a recession

“All of those things suggest that the Fed has a path to bring down inflation without causing a recession,” Yellen told the House Financial Services Committee on Thursday. “I know it will be their objective to try to accomplish that.”

Because of the healthy job market and household balance sheets in the United States, low loan costs, and a strong banking sector, US Treasury Secretary Janet Yellen believes the Federal Reserve can drive inflation down without precipitating a recession.