Yellen says the economy is not in a recession despite GDP slump

Treasury Secretary Janet Yellen said Thursday the U.S. economy is in a state of transition, not recession, despite two consecutive quarters of negative growth.Recession, Yellen insisted, is a "broad-based weakening of our economy" that includes substantial layoffs, business closures, strains in household finances and a slowdown in private sector activity."When you look at the economy, job creation is continuing, household finances remain strong, consumers are spending and businesses are growing."But inflation has proven the bigger obstacle, rising to 9.1% in June while economic growth has failed to keep up.Yellen attributed rising inflation to the war in Ukraine, supply chain problems and the Covid pandemic.