US Treasury: "Fed's Efforts Effective... Preventing Inflation Without Significantly Raising Unemployment Rate"

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] Janet Yellen, U.S. Treasury Secretary, said she believes inflation can be prevented without significantly increasing the unemployment rate, according to the Wall Street Journal on the 21st (local time).

According to the report, Secretary Yellen made the remarks after visiting the Rosebud Indian Reservation in South Dakota and meeting with reporters, stating, "I think the Federal Reserve's efforts can be effective."

Secretary Yellen added that the tight labor market following the COVID-19 pandemic could help control inflation, and if the labor market expands, the wage pressure that triggers inflation could also be alleviated.

She also noted that even if the U.S. unemployment rate rises to 4.5%, it would still be considered a historically strong level. Since 1948, the average unemployment rate in the U.S. has been 5.7%. She said, "It is possible to remain near a tight labor market, known as full employment."

Meanwhile, Secretary Yellen was accompanied by Marilyn Malerba, who has been nominated as U.S. Treasurer. If appointed, Malerba will become the first Native American U.S. Treasurer.

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