(Bloomberg) -- Treasury Secretary Janet Yellen said that the US economy is showing no signs of a looming recession and that it’s too soon to tell what impact there my be from the strike in the US automobile industry.

“I don’t see any signs that the economy is at risk of a downturn,” Yellen said Monday in an interview with CNBC. While softening somewhat, the labor market is still in a “healthy” condition, industrial output is rising and “inflation is moving down,” she said.

Yellen said that she’s monitoring a number of developments, including a potential blow to consumer spending from the resumption of student-loan payments after a years-long moratorium. Credit continues to be available, although interest rates have climbed and that “has made a difference in some sectors.” She also said she expects oil prices will stabilize.

As for the impasse between the United Autoworkers Union and the carmakers Stellantis NV, Ford Motor Co. and General Motors Co. over pay, Yellen said the Biden administration is expecting that the sides will be negotiating “24/7” to get a solution.

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“It’s premature to be making forecasts on what it means for the economy,” she said. “It would depend very much on how long the strike lasts and exactly who’s affected by it.”

Yellen said “The two sides need to narrow their disagreements and work for a win-win,” she said.

The Treasury chief also called on Congress to enact appropriations legislation to keep the federal government funded after the new fiscal year starts Oct. 1.

“There’s absolutely no reason for a shutdown,” Yellen said. While the economy is in a good condition, the loss of momentum thanks to federal government disruption is “something we don’t need as a risk,” she said.

Republicans in the House, where they hold a majority, have been battling to consolidate behind legislation that could pass in that chamber. Right-win GOP members have been pressing for deeper spending cuts — arguing that US fiscal deficits pose a major economic threat — that wouldn’t win majority support in the Senate. 

Yellen said that she isn’t seeing any notable worry in the bond market about the size of US Treasury debt issuance. Still, it’s important to make sure fiscal deficits are “under control,” and reducing them is something to work on going forward, she said.

(Updates with further comments throughout.)

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