The U.S. economy is showing no signs of a recession on the horizon and it's too soon to make a call on the potential impacts of the U.S. auto industry strikes, according to Treasury Secretary Janet Yellen.
What To Know: Yellen highlighted recent data Monday morning showing that inflation continues to trend lower, the labor market remains healthy and consumer spending is still robust.
"I don’t see any signs that the economy is at risk of a downturn," Yellen said in an interview aired on CNBC's "Squawk On The Street."
"This is the best of all worlds to see continued strength in the economy, a good strong labor market and inflation moving down."
Although interest rates are much higher than they were, credit remains available, she said. The Biden cabinet member acknowledged there has been some cooling in the economy and a slowdown of growth from peak levels, but she stressed this is "appropriate" and she's "pleased" by what she is seeing.
In terms of the auto worker strikes, Yellen said it's "premature" to forecast potential impacts on the economy, adding it's unclear how long the strikes will last.
"We want to see the two sides come to a win-win agreement," she said.
The United Auto Workers union strikes have entered their fourth day as workers continue to push for higher wages and highlight pay increases at the executive level.
The strike marks the first time the UAW has gone toe to toe with all three of the Detroit-based automakers — Ford Motor Co F, General Motors Co GM and Stellantis N.V. STLA — simultaneously.
Workers continue to demand wage increases similar to the 40% increase CEOs have seen over the last four years and the automakers have responded with temporary layoffs. Ford temporarily cut 600 workers from one of its plants and GM temporarily laid off approximately 2,000 workers.
Check This Out: 5 Things To Know Monday About UAW Strike Against US Auto Giants
Yellen called on the two sides to "narrow their disagreements" in an effort to reach a solution that is good for the industry and the workers.
The Treasury Secretary said she's also monitoring oil prices and a potential resumption of student loan payments, and she called on Congress to make sure the federal government remains funded and avoids a shutdown.
"There’s absolutely no reason for a shutdown," Yellen said.
She noted that a potential shutdown could take a toll on the economy, but reiterated that there's no reason a shutdown should occur if Congress does its job.
"We've got a good strong economy as we just discussed and creating a situation that could cause a loss of momentum is something we don’t need as a risk," Yellen said.
Photo: courtesy of the Federal Reserve.
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