Despite admitting in May she’d been wrong about the path inflation would take, Treasury Secretary Janet Yellen said Sunday she expected the Federal Reserve’s policies to be “successful.”
“The Fed is charged with putting in place policies that will bring inflation down. And I expect them to be successful,” Yellen told anchor Chuck Todd on NBC News’ “Meet the Press,” Sunday after downplaying recession fears.
The Biden administration, including Yellen, previously dismissed concerns about rising costs and said the contributing factors were “transitory.”
“We have in recent months seen some inflation, and we — at least on a year-over-year basis — will continue, I believe through the rest of the year, to see higher inflation rates, maybe around 3 percent,” Treasury Secretary Janet Yellen said about in inflation in early June 2021. “But I personally believe that this represents transitory factors.”
Since then, the U.S. has experienced 13 straight months of high inflation. In June, inflation surged to 9.1%, marking the fastest pace of inflation in more than 40 years.
As RTM reported on July 14th, Yellen said bringing down rising prices will be Washington’s top priority as inflation is “unacceptably high.”
Her Thursday remarks in Bali, Indonesia, were made prior to a meeting of finance ministers from the Group of Twenty.
The federal Bureau of Labor Statistics revealed yearly inflation rose 9.1 percent over the previous year, the fastest pace for inflation since November 1981.
“We’re first and foremost supportive of the Fed’s efforts,” Yellen remarked during the Bali news conference, “what they deem to be necessary to get inflation under control.”
“Beyond that, we are taking our own steps, which we believe will be supportive in the short term to get inflation down,” she added, “particularly what we’re doing on energy prices and the Strategic Petroleum Reserve.”
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