The economy slows down in China: the evaluation from the US and its impact

“The economic slowdown in China will have a major impact in its neighboring Asian countries, although there will be indirect ramifications in the United States,” he said. Yellen during a press conference in Las Vegas, where he is promoting economic policy achievements of the administration Biden.

“With this in mind, I maintain considerable optimism regarding the general prospects of the United States. Although it is an element that we must consider as risk“he added, referring to the situation in China.

Economic slowdown in the US

Regarding the US economy, he commented: “In the case of the United States, we are observing a slowdown in the rate of growth, but this one is still healthy. Our labor market continues to be robustand inflation is on the decline.”

Yellen’s remarks came a few days after the President Joe Biden describe China’s economic challenges as a “imminent threat”” and referred to the leaders of the Communist Party as “negative actors“. During a political fundraiser on August 11, Biden expressed that China was facing “difficulties“due to the slowdown in its growth rate and its high unemployment rate.

This week, concerns about economic growth in China have heightened. the yuan has fallen to its lowest level since November after the release of a series of disappointing economic figures. So far this year, the currency has lost about 5% of its value, the worst performer in Asia after the Japanese yen.

China: negative economic data

Among China’s most negative economic data, a decrease in bank loans stands out, which have reached their lowest point in 14 years. In addition, both consumer prices and producer prices have fallen, and exports have experienced the biggest drop since February 2020.

In contrast, Yellen focused attention on the surprising resilience of the US labor marketdespite the most aggressive series of interest rate hikes implemented by the Federal Reserve in decades.

When asked why polls show that the majority of Americans do not perceive a favorable economic outlookYellen responded by noting that her perspective is much more positive when inquiring about her personal financial situation.

“When citizens are questioned about their personal economic situation, 70% or more say they feel very satisfied“, he explained. “However, his views are more moderate when considering the economy as a whole.”

In a later interview with CNNYellen also addressed the ongoing impact of the war in Ukraine led by Russia in the global and US economies. She noted that Russia’s recent decision to withdraw from an agreement that allowed the export of Ukrainian grains through the Black Sea has contributed to raising international food prices, especially affecting the most disadvantaged nations. In addition, she stressed that Russia is also suffering the consequences of the war.

“Russian currency has lost value, which reflects the influence of our sanctions and the war on the Russian economy,” he said.

Before the fall of ruble above the threshold of 100 rubles to the dollar, something that had not happened since March 2022, the Central Bank of Russia called an extraordinary meeting scheduled for Tuesday.