WASHINGTON: US Treasury Secretary Janet Yellen mentioned Monday it’s too early to gauge the financial influence from an ongoing, historic strike at three prime automobile producers.
“It is untimely to be making forecasts about what it means for the economic system,” she mentioned in an interview on CNBC, including that this is determined by how lengthy the strike lasts and who’s affected by it.
Her feedback got here because the “Huge Three” automakers — Normal Motors, Ford and Stellantis — had been hit Friday by a restricted strike after a failed push to provide an settlement with the United Auto Staff union.
The UAW is looking for higher situations throughout the board for staff, together with a 40 p.c pay elevate over the subsequent four-year contract.
Biden says nobody needs UAW strike, however earnings must be shared with staff
The group’s chief warned Sunday that the strike may broaden if firms don’t elevate their wage provides in present negotiations.
“We need to see the 2 sides come to a win-win settlement,” Yellen mentioned on Monday.
“President (Joe) Biden has made clear he expects them to work onerous to barter 24/7 to get to an answer. And so we’re hoping that that can occur quickly,” she added.
Requested in regards to the US economic system after a number of Federal Reserve rate of interest hikes, Yellen mentioned: “I do not see any indicators that the economic system is vulnerable to a downturn.”
She famous that america continues to have a wholesome labor market whereas client spending stays “fairly strong” — all whereas inflation is cooling.
Officers are additionally monitoring gasoline costs after a surge in August, Yellen mentioned, noting that the expectation is for power costs to stabilize.
On issues of a looming US authorities shutdown on the finish of this month, Yellen harassed “there’s completely no motive for a shutdown.”
EY chief economist Gregory Daco estimated Monday that every week of a shutdown will value the US economic system $6 billion, weighing on fourth quarter progress.
Yellen mentioned: “The Senate Republicans, the Democrats in each the Home and Senate, stand able to enact appropriations payments which might be per the bipartisan settlement that was reached to raise the debt ceiling.”
“We would like Congress to do its work of funding the federal government and maintaining it open,” she added.