© Reuters. FILE PHOTO: U.S. Treasury Secretary Janet Yellen testifies before a Senate Finance Commmittee hearing on President Biden’s 2023 budget, on Capitol Hill in Washington, U.S., June 7, 2022. REUTERS/Evelyn Hockstein/
By David Lawder
ROSEBUD, South Dakota (Reuters) -U.S. Treasury Secretary Janet Yellen said on Tuesday she still views two quarters of negative growth as a good rule of thumb to indicate a recession, but believes it is possible to bring down inflation while maintaining full employment.
“A shorthand of two quarters of negative growth has typically worked, and so a lot of people think of it that way,” Yellen told reporters during a visit to the Rosebud Sioux Tribe reservation in South Dakota when asked how she would measure a recession. “But recessions aren’t all the same.
“There are deep recessions. There are shallow recessions. There are recessions that have rapid recovery. There are recessions that might raise the unemployment rate slightly, but not a whole lot,” she said.
Yellen has said recently that a U.S. recession “is not inevitable” despite aggressive interest rate hikes from the Federal Reserve to cool demand – moves that have prompted more economists to forecast a recession by 2023.
But she said she believed most economists were not predicting recession because they were taking into account the unique features of the post-COVID-19 economy, including a “quite depressed” labor force participation rate.
“And so we have a very tight labor market. Wages have been rising pretty rapidly, but if we see people come back into the labor market, that’s one way in which labor market tightness might be mitigated and that could help to bring down inflationary pressures,” Yellen said.
The current economic situation should be viewed with this in mind, she said.
“Staying in the neighborhood of tight labor markets, what people would dub full employment, I believe it’s possible,” Yellen added.
Italy says can exceed 3.1% growth target for 2022 despite energy prices
© Reuters. FILE PHOTO: People walk along the Galleria Vittorio Emanuele II shopping mall in Milan, August 25, 2015. REUTERS/Flavio Lo Scalzo
ROME (Reuters) – Italy’s Treasury said the country’s economy could grow this year by at least as much as Rome’s official target of 3.1% set in April, despite the negative impact of surging energy prices.
Italy grew 0.1% in the first quarter from the previous three months, national statistics bureau ISTAT said last month, revising up a preliminary estimate of a 0.2% contraction.
This left Italy with so-called “carryover” growth of 2.6% this year, assuming gross domestic product was flat in the remaining three quarters, ISTAT said.
Announcing on Monday the bond issuance programme for the third quarter, the Treasury said it expected growth to accelerate in the second quarter, compared with the first three months.
This still makes it plausible to reach or exceed the 2022 growth target of 3.1%, it said in its debt issuance report.
Prime Minister Mario Draghi’s government in April revised down its 2022 economic growth forecast to 3.1% from a 4.7% projection made last September.
The government has budgeted since January more than 33 billion euros ($34.90 billion) to soften the impact of sky-high electricity, gas and petrol costs.
($1 = 0.9456 euros)
French consumer confidence falls more than expected in June
© Reuters. A woman shops at a fruit and vegetables shop in Paris, France, June 10, 2022. REUTERS/Sarah Meyssonnier
PARIS (Reuters) – French consumer confidence fell more than expected in June, hitting a near nine-year low as concerns about the economic outlook surged in the face of high inflation and political uncertainty, a survey showed on Tuesday.
The INSEE official statistics agency said its consumer confidence index fell to 82 in June from 85 in May and the lowest level since July 2013.
A Reuters poll of 14 economists had an average forecast of 84 with the lowest estimate for 83.
Although households’ concerns about future inflation remained well above the long-term average, they eased in June for the third month in a row.
However, household sentiment about the general economic outlook continued to worsen, falling to the lowest level since May 2020 when France was in the second month of its first and most strict COVID-19 lockdown.
While surging inflation has stressed households in recent months, France’s political situation has added to uncertainty about the economic outlook since President Emmanuel Macron’s party lost its ruling majority in legislative elections this month.
Peru truckers, farmers to strike over fuel and fertilizer costs
© Reuters. FILE PHOTO: People walk next to parked trucks during a national transportation strike against fuel prices, in Lima, Peru March 18, 2021. REUTERS/Angela Ponce/File Photo
By Marco Aquino
LIMA (Reuters) – Peru’s truckers and some farm groups will go on strike on Monday after failing to reach agreements with the government seeking measures to reduce the impact of steep global price rises of fuel and fertilizer, sector leaders said on Sunday.
Union leaders met on Friday and Saturday with government representatives, with demands including considering freight transport a “public service” that would reduce costs and curb competition from truckers from neighbor countries.
“We are firm in plans to strike with all our bases nationwide,” the leader of the heavy load haulage and drivers union Marlon Milla told radio station RPP. The union has 400,000 cargo transport units in 14 of the 25 regions of the country.
High global fuel prices linked to Russia’s invasion of Ukraine have stoked unrest in Peru, the world’s No. 2 copper producer, while shortages of fertilizer have raised fears over food supply with the government struggling to secure shipments.
The government of leftist President Pedro Castillo, who has seen his popularity tumble since taking office last year, has taken measures to curb the rising cost of living, but the annual inflation rate remains at around 8%, its highest level in 24 years.
Some farming unions also announced strikes on Monday, in protest at the rise in fertilizer prices and shortages.
Latin American leaders are grappling to bring down spiraling prices despite major interest rate hikes. Trucking protests over fuel costs have hit Argentina while Ecuador is being roiled by protests in part linked to gas prices. [L4N2YB27W]
“The dialogue has not been exhausted, we are in a permanent session of ministers to avoid protest,” Justice Minister Félix Chero told reporters on Sunday. The government is offering subsidies for road tolls and fertilizer costs.
Dogecoin price could rally 20% in July with this bullish reversal pattern
Dogecoin price could rally 20% in July with this bullish reversal pattern Dogecoin (DOGE) looks ready to extend its rebound...
Easing chip shortages to help Volkswagen in H2 – CEO
© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York...
Futures rise as easing China COVID curbs lift travel, leisure stocks
© Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S.,...
Euro below $1.06 as Lagarde keeps July policy options open
© Reuters. A shopper pays with a ten Euro bank note at a local market in Nice, France, June 7,...
China’s economy recovering but foundation not solid, premier says
© Reuters. FILE PHOTO: Chinese Premier Li Keqiang is seen on a screen as he attends a news conference via...
3 charts showing this Bitcoin price drop is unlike summer 2021
3 charts showing this Bitcoin price drop is unlike summer 2021 Bitcoin (BTC) bear markets come in many shapes and...
Reliance Chairman Mukesh Ambani steps down as director of telecom arm
© Reuters. FILE PHOTO: Mukesh Ambani, Chairman and Managing Director of Reliance Industries, arrives to address the company’s annual general...
UBS Downgrades Ebay, Farfetch to Neutral on Guidance Risks
© Reuters. UBS Downgrades Ebay (EBAY), Farfetch (FTCH) to Neutral on Guidance Risks By Senad Karaahmetovic UBS analyst Kunal Madhukar...
Bank of America Clients are Selling This Rally
© Reuters. Bank of America Clients are Selling This Rally By Senad Karaahmetovic Bank of America strategist Jill Carey Hall...
Michelin to hand over Russian operations to local management
© Reuters. FILE PHOTO: The logo of French tyre maker Michelin is seen on tyre of a Formula E racing...
U.S. Capitol riot panel promises new evidence at surprise Tuesday hearing
2/2 © Reuters. FILE PHOTO: A video of former U.S President Donald Trump speaking is shown on a screen during...
Stocks, oil higher as China relaxes quarantine rules
2/2 © Reuters. FILE PHOTO: A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, walks past an...
FTM Begins to Retest Previous Highs As Correction May Be Over
FTM Begins to Retest Previous Highs As Correction May Be Over Fantom (FTM) seems to be retesting previous highs. FTM...
White House says companies investing $700 million to boost EV charger production
2/2 © Reuters. FILE PHOTO: A electric vehicle charger is seen as a vehicle charges in Manhattan, New York, U.S.,...
SEC Chief Gary Gensler Labels Bitcoin a Commodity, but Other Cryptos Securities
The U.S. regulator has determined: bitcoin is a commodity. Other cryptocurrencies can be securities SEC Chair Gary Gensler reiterated that...
Explainer-Why the survival of Scandinavian airline SAS hinges on Denmark
© Reuters. FILE PHOTO: A Scandinavian Airlines (SAS) plane is refuelled at Oslo Gardermoen airport, Norway, November 7, 2019. REUTERS/Lefteris...
Lira Weakens as Corporates Keep Buying Dollars Despite New Rule
© Bloomberg. An electronic board displays exchange rates information at a currency exchange bureau in Istanbul, Turkey, on Friday, June...
Russia fines foreign firms for alleged data storage violations
© Reuters. FILE PHOTO: Attendees walk past a Twitch logo painted on stairs during opening day of E3, the annual...
Siemens to invest in Volkswagen’s N.American charging network
© Reuters. A electric vehicle charger is seen as a vehicle charges in Manhattan, New York, U.S., December 7, 2021....
Why Russian oil and gas price cap is easier said than done
© Reuters. FILE PHOTO: Model of petrol pump is seen in front of EU and Russian flag colors in this...
FTX-Robinhood Rumors: Piper Sandler Sees ‘Win-win’ Situation, Others Less Optimistic
© Reuters FTX-Robinhood Rumors: Piper Sandler Sees a ‘Win-win’ Situation, Others Less Optimistic By Senad Karaahmetovic Robinhood (NASDAQ:HOOD) shares...
Lufthansa CEO apologises for summer travel chaos
© Reuters. FILE PHOTO: CEO of German air carrier Lufthansa Carsten Spohr delivers a speech at the ILA Berlin Air...
G7 agrees to explore cap on Russian oil price – communique
2/2 © Reuters. FILE PHOTO: Yang Mei Hu oil products tanker owned by COSCO Shipping gets moored at the crude...
Uzbekistan warms up to Bitcoin mining, but there’s a catch
Uzbekistan releases requirements for miners Uzbekistan’s National Advanced Projects Agency (NAPP) has required miners to register and use solar power...
Ethereum’s Price Action Suggests Better Upside Potential
Ethereum’s Price Action Suggests Better Upside Potential At the moment, ETH’s price is closer to a bottom than a new...
From Peru to Uganda, activists call on Deutsche Bank to drop fossil finance
4/4 © Reuters. Ankuash Mitiap Kapuchak and Shapiom Noningo Sesen, indigenous leaders from Peru and Ricardo Perez of the environmental...
Factbox-Four key races in Illinois, Colorado midterm primaries
© Reuters. FILE PHOTO: An American flag flies outside of the U.S. Capitol dome in Washington, U.S., January 15, 2020....
Rescuers dig for survivors after Russian missiles demolish Ukrainian shopping mall
6/6 © Reuters. Rescuers work at a site of a shopping mall hit by a Russian missile strike, as Russia’s...
Renault teams up with Atos on data gathering
© Reuters. FILE PHOTO: The Renault logo on the Renault Scenic Vision concept-car is seen at its exhibition space, at...
Cardano Has Highest Development Activities in 30 Days: Report
Cardano Has Highest Development Activities in 30 Days: Report Sanbase reports a list of the top 10 coins with the...
- Coronavirus7 months ago
Biden administration still seeking agreement from Mexico on return of asylum seekers
- Cryptocurrency8 months ago
NFT World Records: CryptoDragons Sold Out 500 Eggs in Its Primary Pre-Sale in Тhe Тwinkling of аn Еye!
- Cryptocurrency8 months ago
Crypto.com is the #1 app in the Google Play Store in the US
- Economy7 months ago
Analysis-Europe’s big payday remains elusive even as inflation surges
- Cryptocurrency8 months ago
The Next Web 3.0 Social Media Will Be Built on Solana
- Cryptocurrency7 months ago
Binance.US aims for ‘mega funding,’ reveals CZ
- Cryptocurrency7 months ago
The Most Expensive NFT in The Sandbox Metaverse Sold for $650,000
- Forex7 months ago
Dollar Consolidates After Strong Gains; Tapering Could Be Speeded Up