US Treasury Secretary Janet Yellen said today that the US was making good progress in bringing inflation down and she did not expect the US economy to enter into a recession.
Yellen was speaking to Bloomberg TV from India during a meeting of Group of 20 finance officials.
She said slower growth in China could spill over to other economies, but the US economy was on "a good path" to reducing inflation while the labour market remained strong.
"For the US, growth has slowed, but our labour market continues to be quite strong. I don't expect a recession," Yellen said. "The most recent inflation data were quite encouraging."
Yellen said Chinese officials raised serious concerns, especially about US tariffs, during her visit earlier this month, but the underlying reasons that Washington implemented them in the first place, including unfair trade practices, had not been addressed.
"We have to see what comes out of the four-year review"o f tariffs, Yellen said, adding, "But I would emphasise that really the underlying concerns have not yet been addressed. And we need to work on that going forward."
Yellen said the US was likely to proceed witha new executive order restricting outbound investment in China, but stressed that these would focus narrowly on three sectors -semiconductors, quantum computing and artificial intelligence.
"They would contain a combination of notification requirements, and in a very narrowly scoped portion of these sectors, prohibitions, but these would not be broad controls that would affect US investment broadly in China," she said.
