In an exclusive interview with Reuters, Janet Yellen, the US Treasury Secretary, stated that despite a weaker-than-expected first-quarter GDP reading, the US economy is performing well and inflation is moving toward a more normal level. Yellen made these comments during an interview as part of Reuters’ NEXT Newsmakers series with editor in chief Alessandra Galloni.
The Commerce Department reported that the US economy grew at an annualized rate of 1.6% in the first quarter, marking the slowest pace of growth since the economy contracted in the second quarter of 2022. However, economic growth continues to be strong, with a robust job market and consumer spending.
Inflation in the US has slowed down, but progress halted this year due to rising gas prices and high services and shelter costs. Federal Reserve officials have warned that bringing down inflation will be a challenging process, and they are expected to hold interest rates steady in their upcoming meeting.
Geopolitical tensions are on the rise internationally with conflicts in Ukraine and the Middle East. In addition, the US-China relationship has become more strained. President Joe Biden recently called for a review of tariffs on Chinese steel and aluminum, potentially increasing the existing tariff rate.
The ongoing review is expected to be completed soon, and actions may be taken to enhance the effectiveness of tariffs based on the findings. The situation is developing and updates will be provided.