(Bloomberg) -- Treasury Secretary Janet Yellen reiterated that she sees a “path” for inflation to come down while retaining a strong US job market.
“What’s important is to try to bring inflation down,” and that remains a priority, Yellen said in an interview on CNBC Wednesday. The administration continues to support the Federal Reserve’s efforts in that regard, she said.
Yellen also said that the recent deal to suspend the debt limit was a “win” for the American people.
“A recession would have been very likely” if the issue hadn’t been addressed, along with a financial crisis, she said, repeating warnings she had made for months.
“We’re seeing areas of the economy that are slowing down,” Yellen also said. There will be “issues” with commercial real estate, she said, amid changing work patterns. But she suggested that banks would be able to handle the strains ahead.
Yellen also said she wouldn’t be surprised to see some consolidation in the banking sector given certain lenders are experiencing pressure on earnings.
She reiterated the view that “the level of capital and liquidity in the banking system is strong.”
(Updates with comments on banking starting in sixth paragraph.)
©2023 Bloomberg L.P.