US Yellen: "Inflation Slowdown, Significant Progress"

U.S. Treasury Secretary Janet Yellen stated that despite a strong labor market, there has been significant progress in slowing inflation. She cited persistently high food and housing costs as reasons why Americans remain pessimistic about the economic outlook.

[Image source=Reuters Yonhap News]

On the 20th (local time), Yellen appeared on CNBC's Squawk Box and said, "Overall inflation has slowed, but Americans are still seeing higher prices for key items, including food, compared to before the pandemic." She explained, "This remains noticeable to shoppers in stores."

Due to the Federal Reserve's interest rate hikes, the U.S. Consumer Price Index (CPI) increase has eased from the 9% range last year to 3.2% in October. However, food price increases over the past year have outpaced the overall CPI rise. CNBC reported that various factors contribute to this, including grain price increases caused by the Ukraine war and price hikes by restaurants.

Housing cost inflation also remains high. Yellen pointed out, "Rents are rising more slowly than before, but they are definitely higher than pre-pandemic levels." She added, "We believe we have made significant progress in lowering inflation. However, Americans are still experiencing higher inflation than before."

However, CNBC noted that ahead of next year's presidential election, there is a gap between the "significant progress" assessed by Yellen and the Biden administration and what voters feel through their monthly household expenses. Unlike the Biden administration's active promotion of the achievements of "Bidenomics," an NBC poll released the previous day showed that nearly 60% of voters do not support President Biden's economic policies.

In response, Yellen emphasized, "It is our duty to explain what President Biden has done to improve the economy," adding, "Inflation has slowed, price increases have stopped, and the labor market remains strong."

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