Yellen says the economy is not in a recession despite GDP slump

Despite two quarters of negative growth, the U.S. economy is not in a recession.

Large layoffs, business closings, strains in household finances and a slowdown in private sector activity are some of the signs of a recession.

She said during the news conference that they are not seeing that right now. The economy continues to create jobs, household finances are strong, consumers are spending and businesses are growing.

The Bureau of Economic Analysis reported that the broadest measure of economic activity fell in the second quarter.

The two straight declines meet a commonly used definition of a recession after a 1.6% contraction in the first quarter. The National Bureau of Economic Research won't rule on recessions for a while.

Nonfarm payroll growth of more than 9 million was one of the accomplishments of the administration.

Economic growth has not kept up with inflation, which rose to 9.1% in June. Recent surveys show a majority of Americans think the country is in a recession.

The administration islaser-focused on addressing the situation after acknowledging the burden of higher prices.

She said that the new phase of the recovery focused on achieving steady, stable growth without sacrificing the gains of the last 18 months. There are challenges that we know about. The global growth rate is slowing. It is this administration's top priority to bring inflation down.

President Joe Biden and Federal Reserve Chair Janet Yellen both talked about the possibility of a new bill that would fight inflation. The legislation aims to raise tax revenue, lower drug costs and invest in renewable energy.

While the Federal Reserve has the primary role in bringing down inflation, the president and I are committed to taking action to drive down costs and protect Americans.

The Fed has raised rates four times this year and is expected to add more increases later in the year.

The war in Ukraine is one of the reasons for rising inflation. She didn't talk about the impact that monetary and fiscalStimulus had on prices.