Janet Yellen says inflation war is still going well Although US inflation The level is currently too high. compared to the target inflation rate. But began to see signs of slowing down and believed that the Fed would successfully push inflation to its target.
US Treasury Secretary Janet Yellen Giving an exclusive interview with CNN on February 27th. by expressing the belief that Although US inflation At the moment, it’s still at a level that’s a bit too high. Compared to the inflation target of 2%, soft landing is still likely.
Yellen stated that Efforts by the Federal Reserve (Fed) to reduce inflation. While maintaining a strong labor market seems more likely. And so far the overall situation of the struggle to manage inflation is still good. amid the uncertainties faced by the United States.
The Treasury Secretary acknowledged that the United States may suffer a shock from uncertainty over inflation that remains too high. But in general, if considering the past year Inflation has already signaled a decline. And in Yellen’s view, the Fed is committed to continuing the process of reducing inflation to normal levels. He believes the Fed will eventually achieve its inflation target.
Yellen is currently in Kiev. capital city of ukraine which is a journey without prior notice Yellen is scheduled to meet with the Ukrainian government. including President Volodymyr Zelensky to stand in support of US Ukraine Including announcing $1.25 billion in economic aid. and continuing to enhance the effectiveness of sanctions on the Russian economy.
Meanwhile, Yellen also used the opportunity to urge the US government to Accelerate the passage of a bill to increase the debt ceiling which the Treasury Department is currently taking special measures to allow the US government Can spend until the beginning of June already. before asserting that inflation and US debt levels It is still an issue that needs to be given the highest priority.
However, the interview contradicts a report by the National Association for Business Economics (NABE), or the National Association for Business Economics. A survey of 48 top economists across the US found that about 58% of these economists A recession is expected this year. That’s the same proportion that was mentioned in the NABE survey last December.
One in four economists expect The recession will occur at the end of March. which was lower than the previous survey. Shows that most begin to see the likelihood of a recession that will start later than previously expected.
One in three economists surveyed expected The recession will start in the second quarter of this year, while one in five think it will start in the third quarter between July and September.
Economists Lag in Recession Forecasts It comes amid reports of economic data that indicate US economy It is strong and durable after the Fed raised interest rates 8 times to curb inflation.
One of the factors reflecting the strength of the US economy. is the employment rate which in January last Employers are adding more than half a million jobs. And the unemployment rate rose to 3.4%, the lowest level since 1969.
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