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U.S. Treasury’s Yellen says Fed can carry down inflation with out inflicting recession By Reuters



© Reuters. U.S. Treasury Secretary Janet Yellen testifies throughout a U.S. Home Committee on Monetary Companies listening to on the Annual Report of the Monetary Stability Oversight Council, on Capitol Hill in Washington, DC, U.S. Might 12, 2022. Graeme Jennings/Pool by way of RE

WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen stated that she believes the Federal Reserve can carry down inflation with out inflicting a recession due to a robust U.S. job market and family steadiness sheets, low debt prices and a robust banking sector

Yellen advised a U.S. Home of Representatives Monetary Companies Committee listening to on Thursday that “all of these issues counsel that the Fed has a path to carry down inflation with out inflicting a recession, and I do know it will likely be their goal to attempt to accomplish that.”

Yellen stated through the listening to on the Monetary Stability Oversight Council’s work that inflation was the “No.1 financial challenge” dealing with the nation and the Biden administration.

“It is having a considerable antagonistic influence on many weak households And we’re laser-focused on addressing inflation,” Yellen stated, repeating the Biden administration’s initiatives to carry down gasoline costs by massive releases of from the Strategic Petroleum Reserve and efforts to unblock congested U.S. ports.

She deflected a number of makes an attempt from Republican lawmakers to attempt to coax her in charge excessive inflation on the Biden administration’s $1.9 trillion COVID-19 reduction spending package deal final 12 months.

Yellen stated that varied components have been fueling inflation, together with spikes in vitality costs attributable to Russia’s invasion of Ukraine and continued pandemic-driven provide chain issues, and different international locations have been additionally experiencing excessive inflation.

“It does present that there are components past spending in the US which are vital to inflation,” she stated.

Information on Thursday confirmed that the U.S. labor market remained tight, as producer value inflation has began to decelerate, rising 0.5% in April in comparison with a 1.6% surge in March, the Labor Division stated.



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