Yellen downplays US recession risk as economic reports loom

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Yellen downplays US recession risk as economic reports loom
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Treasury Secretary Janet Yellen on Sunday said the U.S. economy is slowing but pointed to healthy hiring as proof that it is not yet in recession.

. The data will cover sales of new homes, consumer confidence, incomes, spending, inflation, and overall output.

. Two straight negative readings is considered an informal definition of a recession, though in this case economists think that's misleading.Instead, the National Bureau of Economic Research — a nonprofit group of economists — defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.”

She said that slowdown is “necessary and appropriate," because “we need to be growing at a steady and sustainable pace.”Still, many economists think a recession is on the horizon, with inflation eating away at Americans' ability to spend and the Federal Reserve rapidly pushing up borrowing costs. Last week, Bank of America's economists became the latest to forecast a “mild recession” later this year.

Fewer home sales also means less spending on items that typically come with purchasing a new house, such as furniture, appliances, curtains, and kitchenware.

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