Treasury Secretary Janet Yellen said a strike by rail workers would cause a “significant impediment” to shipping goods nationwide and that the US could feel some spillover from a possible recession in Europe this winter.
(Bloomberg) — Treasury Secretary Janet Yellen said a strike by rail workers would cause a “significant impediment” to shipping goods nationwide and that the US could feel some spillover from a possible recession in Europe this winter.
The White House is leading talks between labor and freight-rail firms that risks a system-wide halt as soon as Friday. The dispute is already triggering protective shutdowns of cargo and some passenger services.
Yellen, speaking in an interview with CBS aired Wednesday evening, also said that she expects to see a “substantial improvement over the coming year” on inflation, which is near a four-decade high.
“I do believe it will come down over time due to actions the Fed is taking,” she said.
Surging energy prices in Europe heading into winter threaten tipping the region into a recession.
“A recession in Europe would have spillovers for us,” she said. “I do think this winter is going to be tough and challenging for our European neighbors.”
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