US Treasury Secretary Janet Yellen Admits 'Inflation Misjudgment'

[Image source=Yonhap News]

[Asia Economy Reporter Jang Hyowon] Janet Yellen, the U.S. Treasury Secretary, has reportedly admitted to a past misjudgment regarding the risk of inflation.

According to foreign media on the 31st (local time), Secretary Yellen said in an interview with CNN that when asked whether she had underestimated the threat of inflation last year, "I think my judgment at the time about how inflation would unfold was wrong."

Last May, Yellen appeared at a House Appropriations Committee subcommittee hearing and stated, "My current judgment is that the recent inflation is temporary," adding, "It is not something chronic."

She said, "There was an unexpected large shock to the economy caused by rising energy and food prices and supply bottlenecks," and "I did not fully understand this."

She explained, "The shocks to the economy continue, but inflation is the part President Joe Biden is most concerned about," and "The President trusts the Federal Reserve (Fed) and supports the Fed's independence in taking measures to reduce inflation."

Additionally, Secretary Yellen stated that the Biden administration will support the Fed's efforts to stabilize prices by promoting legislation to lower prescription drug and healthcare costs and encourage the use of renewable energy. While she found the recent decline in core inflation encouraging, she cautioned that oil prices remain high and Europe is planning a ban on Russian crude oil imports.

This content was produced with the assistance of AI translation services.