Treasury Secretary Janet Yellen and top officials at the Federal Reserve are acknowledging that the country’s soaring inflation is unlikely to go away anytime soon.
Yellen, who formerly led the central bank, said Sunday that “unacceptably high” inflation will permeate the economy for at least the rest of the year, a prospect that hurts Democrats’ chances of retaining control over the House and Senate.
Top officials at the Fed are also warning consumers to be prepared to feel the sting of inflation for months to come. Mester isn’t the only Fed official cautioning about the stickier-than-anticipated inflation. Federal Reserve Bank of St. Louis President James Bullard recently said the high prices, and the Fed’s inability to drive inflation down thus far, are hurting the central bank’s reputation.
As of its meeting last week, Fed officials expect inflation, gauged by the Fed’s preferred personal consumption expenditures price index, to remain elevated at 5.2% by the end of the year — nearly a percentage point higher than it projected in March. Inflation will remain higher than wanted in 2023, ending the year up 2.7%, according to the projections.
Many economists also blame excessive government spending during the first year of President Joe Biden’s term as another major factor behind the high inflation. Republicans have used it as a cudgel against the administration and congressional Democrats. Meanwhile, Biden and Democrats are pushing their own narrative about inflation, focusing on externalities from Russia’s war in Ukraine and global supply chain troubles that are largely out of the control of Congress and the president.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US Treasury Secretary Janet Yellen says recession is not inevitableShe also discussed Sunday an openness to lowering the federal gas tax to give drivers some relief at the pump.
Read more »
U.S. Recession Isn't ‘Inevitable,' But Inflation Is ‘Unacceptably High,' Treasury Secretary Yellen SaysTalk of a recession has accelerated this year as inflation remains high and the Federal Reserve takes aggressive steps to counter.
Read more »
President Biden Insists US Recession Is Not Inevitable — Treasury Secretary Yellen Concurs – Bitcoin NewsPresident Joe Biden and Treasury Secretary Janet Yellen say that a U.S. recession is not inevitable, dismissing many economists' concerns.
Read more »
Treasury Sec. Yellen says only way to fix energy crisis is to ‘move to renewables’In a Sunday interview, Treasury Secretary Janet Yellen said she does not believe that record-high gas prices are a result of the Biden administration's policies.
Read more »
Yellen says recession not 'inevitable,' though inflation 'unacceptably high'A recession in the United States is not 'at all inevitable,' Treasury Secretary Janet Yellen argued Sunday, days after the Federal Reserve hiked interest rates and raised concerns that an economic downfall could be looming.
Read more »