Janet Yellen: US economy could suffer from a possible recession in Europe

U.S. Treasury Secretary Janet Yellen is concerned about the economic damage caused by an impending strike on freight train personnel in the United States. She also believes that the US economy could suffer from a possible recession in Europe. Yellen told CBS News.

Freight train personnel are threatening to quit work nationwide on Friday due to dissatisfaction with working conditions. They want, among other things, higher wages, less workload and better rules around sick leave. That strike could seriously disrupt the logistics system across the US. The damage to the U.S. economy could be as much as $ 2 billion a day. As a precaution, certain Amtrak rail services have already been shut down.

The White House acts as a mediator between rail companies and unions to resolve the conflict. President Joe Biden is closely following the developments, according to the White House. According to Yellen, a nationwide strike on freight trains would create a “significant hurdle” for freight traffic through the US.

Yellen also stated that the European economy could end up in a recession this winter due to high inflation and sharply increased energy prices. This could have an impact on the US economy. “I think this winter is going to be difficult and challenging for our European neighbors,” Yellen told CBS News.