[Washington, 31st Archyde.com]-US Treasury Secretary Janet Yellen said yesterday that he was wrong in the inflation outlook in the past. Controlling inflation is President Biden’s top priority, and Mr Biden said he supports the Federal Reserve’s actions to achieve it.
In an interview with CNN, Yellen was asked if it was a mistake to not emphasize the threat of inflation in public statements over the past year, saying, “I think I was wrong about the inflation outlook at the time.” rice field.
“There was an unexpected big shock that pushed up energy and food prices, and supply bottlenecks had a huge impact on the US economy, but we didn’t fully understand them at the time,” he said.
He pointed out that there are various shocks such as Russia’s invasion of Ukraine and lockdown (city blockage) due to the spread of the new coronavirus infection in China.
“Although the economic shock continues, inflation is President Biden’s biggest concern,” he said.
“(Mr. Biden) strongly believes and supports the Fed’s independence to take the necessary steps to curb inflation,” he said.
Mr Biden met with Fed Chair Powell on inflation today, emphasizing the idea of respecting the Fed’s independence.
To complement the Fed’s efforts, Yellen explained that the administration is pushing for bills to curb prescription drug prices, reduce medical costs, and expand the use of renewable energy.
Although it is encouraging that the core inflation index has recently declined, crude oil prices have remained high and Europe is planning an embargo on Russian oil. “We cannot rule out further shocks,” he said.