Minister Yellen expressed concern about the US rail strike and the European recession

US Treasury Secretary Janet Yellen is concerned about the economic damage caused by an imminent strike among freight train workers in the US. He also thinks the US economy could be hurt by a possible recession in Europe. Yellen told CBS News.

Freight train workers are threatening to walk off the job across the country on Friday over their dissatisfaction with working conditions. Among other things, they want higher wages, less work pressure and better provisions regarding sick leave. A strike could severely disrupt the logistics system across the United States. The damage to the US economy could be as high as $2 billion a day. Some Amtrak train services have already been suspended as a precaution.

The White House acts as a mediator between the railroad companies and unions to resolve the conflict. President Joe Biden is closely monitoring developments, according to the White House. Yellen said a nationwide freight rail strike would create a “significant disruption” to U.S. freight.

Yellen also said the European economy could end up in recession this winter due to high inflation and sharply increased energy prices. This could affect the US economy. “I think this winter will be difficult and challenging for our European neighbors,” Yellen told CBS.