US recession not inevitable: Yellen

US Treasury Secretary Janet Yellen said on Sunday that US economic growth is slowing and she acknowledged the risk of a recession, but she said a downturn was not inevitable.

Yellen, speaking on NBC's "Meet the Press," said strong hiring numbers and consumer spending showed the US economy is not currently in recession.

US hiring remained robust in June, with 372,000 jobs created and the unemployment rate holding at 3.6 per cent. It was the fourth straight month of job gains in excess of 350,000.

"This is not an economy that is in recession," said Yellen. "But we're in a period of transition in which growth is slowing and that's necessary and appropriate."

Still, data last week suggested the labor market was softening with new claims for unemployment benefits hitting their highest point in eight months.

Yellen said inflation "is way too high" and recent Federal Reserve interest rates hikes were helping to bring soaring prices back in check.

In addition, the Biden administration is selling oil from the Strategic Petroleum Reserve, which Yellen said has already helped lower gas prices.

"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, who previously served as chair of the Federal Reserve, hopes the Fed can cool the economy enough to bring down prices without triggering a broad economic downturn.

"I'm not saying that we will definitely avoid a recession," Yellen said. "But I think there is a path that keeps the labor market strong and brings inflation down."