Treasury Secretary Yellen says the economy is ‘transitioning,’

Treasury Secretary Janet Yellen said Thursday that the U.S. is not in a recession, but the inflation-wracked economy is “transitioning.”

At a news conference in Washington, Ms. Yellen addressed a report showing that second-quarter gross domestic product contracted 0.9%

The second straight quarter of negative growth. She said a slowdown is “appropriate” after strong growth last year, as the U.S. emerges from the COVID-19 pandemic.

“This report indicates an economy that is transitioning to more steady, sustainable growth,” Ms. Yellen said. 

That’s to be expected given how rapidly the economy grew when it was recovering from the pandemic and all of those job losses.

Republicans pointed to the GDP report as proof that the U.S. is already in a recession, with inflation at a 41-year high,

Ms. Yellen said she didn’t want to get into “a semantic battle,” agreeing that most consumers are worried about the economy due to inflation.