In an interview with CNN, Yellen stated that there were unexpected and major shocks in the economy that increased energy and food prices, and that there were supply bottlenecks that affected the economy badly, and that she did not fully understand these developments at that time and said, “I was wrong about the course of inflation.”
Yellen stressed that inflation is a priority for U.S. President Joe Biden, saying Biden shares the Fed’s goal of reducing inflation and believes in the bank’s independence.
Pointing out that the Fed has taken the necessary measures, Yellen said that the bank has tools to reduce inflation.
Yellen said that inflation is very high and needs to be lowered, noting that core inflation has fallen, but oil prices continue to be high.
In an interview with CNBC, Treasury Secretary Yellen said that the White House administration has some strategies to reduce inflation.
Referring to her meeting with Biden yesterday, Yellen said, “The president has emphasized his intention to do everything in his power to cut costs that Americans face for important items in their budgets.”
Yellen pointed out that the labor market is very strong and that maintaining employment while reducing inflation is their priority.
The rapid economic recovery after the COVID-19 outbreak in the US brought about an increase in inflation. Yellen, who previously served as the Governor of the US Federal Reserve (Fed), made comments last year that inflation in the US is temporary and will not pose an ongoing problem.
Annual inflation in the United States, which reached a 41-year high of 8.5 percent in March, fell to 8.3 percent in April, but was above market expectations.
US President Joe Biden met with US Federal Reserve Chairman Jerome Powell and Treasury Secretary Yellen at the White House yesterday to discuss rising inflation in the country.