A recession in the United States is unlikely, but the risk is there, according to Janet Yellen, the US Treasury Secretary, who also ventured into the realm of pop culture anticipating a recession thanks to a question about rapper Cardi B.
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“There is a risk of a recession,” Joe Biden’s Commerce and Finance Secretary said at a New York Times event on Thursday, as fears mount over monetary policy needed to slow inflation.
But when asked, “Is it likely?” she replied, “I don’t think so.”
Many observers fear a recession as the US Federal Reserve (Fed) tightens its monetary policy framework sharply in order to curb demand and thus lower the inflation rate.
“However, there is nothing to suggest that a recession is looming,” estimated Janet Yellen, believing a “soft landing” is possible, ie curbing inflation without pushing the economy into recession or hurting employment too badly.
The Treasury Secretary was also asked about American rapper Cardi B, who took to Twitter on Sunday to wonder when the economy’s plunge into recession would be announced.
“I don’t have much time for them, but I know them,” the minister replied.
Inflation figures for May are due out on Friday and should still be very high but could show that the slowdown that started has continued.
In April, inflation had slowed, but at +8.3% for the year remained very close to its March high of +8.5% in 40 years.
In order to curb this inflation, the US Federal Reserve is raising interest rates to curb consumption and investment. It has already raised it twice and is now in a range of 0.75 to 1.00%.
And it should move to a new turn of the screw, probably by half a percentage point, at its currency committee’s next meeting on Wednesday.
“This could be a way to improve worm health and deal with the large amount of food waste in Western countries,” Rinke said.
But if it’s possible to breed more worms for this purpose, he sees another way: creating recycling facilities that mimic what the larvae do, which is to first shred the plastic and then discard it.
“Ultimately, we want to remove superworms from the equation,” explains the researcher, who now plans further research to find the most effective enzymes and then further improve them through enzyme engineering.