Inflation ‘is way too high’ and recent Federal Reserve (Fed) interest rates hikes were helping to bring soaring prices back in check, Yellen was quoted as saying in the release.
In addition, the US administration is selling oil from the Strategic Petroleum Reserve, which has already helped lower gas prices, Yellen said.
"We've seen gas prices just in recent weeks come down by about 50 cents (a gallon) and there should be more in the pipeline," she said.
Yellen hoped the Fed can cool the economy enough to bring down prices without triggering a broad economic downturn.
US gross domestic product shrank at an annual rate of 1.6 per cent in the first quarter. Even if the second-quarter figure is negative, it would not signal that a recession has taken hold, keeping in view the strength in the job market and strong demand, Yellen said.
"Recession is broad-based weakness in the economy. We're not seeing that now," she added.
US hiring was robust in June, with 372,000 jobs created and the unemployment rate at 3.6 per cent.
ALCHEMPro News Desk (DS)Acknowledging the risk of a recession, US treasury secretary Janet Yellen recently said economic growth is slowing, but a downturn is not inevitable. Strong hiring numbers
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