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Posted on: Tuesday, January 31, 2023 – 1:54 am | Last updated: Tuesday, January 31, 2023 – 1:55 AM
US Treasury Secretary Janet Yellen said that the decline in the inflation rate and its continuation at this level could become a long-term challenge for the US economy and monetary policy makers, once the turmoil of the emerging Corona virus pandemic ends.
“We went through a difficult and unusual period, but I don’t think we went back to the eighties or nineties,” she added in a media interview, referring to the period of high oil prices and wages.
Bloomberg News reported that while central banks are still far from over the worst consumer price inflation in decades, and with the pace of price increases beginning to ease, the debate has now turned to what happens after this fight against inflation is over.
Bloomberg added that the risks of the inflation battle getting out of control are very high, economically and politically. Yellen, along with Jerome Powell, Chairman of the US Federal Reserve (Central Bank) and many US economic institutions, incorrectly expected that high inflation in 2021 would be temporary, while it continued to rise over the past year, and is still high so far.