Yellen: A Recession Is a Risk When Tightening Monetary Policy

EXCERPT:

YELLEN: "Well, it is a risk when the Fed is tightening monetary policy to redress inflation. So, it's certainly a risk that we're monitoring. And we're seeing some slowdown in growth, but that's natural because when President Biden took office, the economy was in a deep hole. Output and employment were well short of their normal and potential levels. We experienced, largely due to the American Rescue Plan, very rapid growth and jobs came back, workers. You know, we faced something that could have been as serious as the Great Depression. And with a 3.7 percent unemployment rate, that's a good strong labor market, and people are seeing many opportunities and getting wage increases. Now, higher food and energy prices are having a negative impact, but we've got a good strong labor market and I believe it's possible to maintain that."