© Reuters. U.S. Treasury Secretary Janet Yellen testifies throughout a U.S. Home Committee on Monetary Providers listening to on the Annual Report of the Monetary Stability Oversight Council, on Capitol Hill in Washington, DC, U.S. Might 12, 2022. Graeme Jennings/Pool through RE
WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen mentioned that she believes the Federal Reserve can convey down inflation with out inflicting a recession due to a powerful U.S. job market and family stability sheets, low debt prices and a powerful banking sector
Yellen instructed a U.S. Home of Representatives Monetary Providers Committee listening to on Thursday that “all of these issues recommend that the Fed has a path to convey down inflation with out inflicting a recession, and I do know it is going to be their goal to attempt to accomplish that.”
Yellen mentioned through the listening to on the Monetary Stability Oversight Council’s work that inflation was the “No.1 financial subject” going through the nation and the Biden administration.
“It is having a considerable hostile influence on many susceptible households And we’re laser-focused on addressing inflation,” Yellen mentioned, repeating the Biden administration’s initiatives to carry down gasoline costs by giant releases of from the Strategic Petroleum Reserve and efforts to unblock congested U.S. ports.
She deflected a number of makes an attempt from Republican lawmakers to attempt to coax her accountable excessive inflation on the Biden administration’s $1.9 trillion COVID-19 aid spending bundle final yr.
Yellen mentioned that numerous components had been fueling inflation, together with spikes in vitality costs as a result of Russia’s invasion of Ukraine and continued pandemic-driven provide chain issues, and different nations had been additionally experiencing excessive inflation.
“It does present that there are components past spending in america which can be vital to inflation,” she mentioned.
Knowledge on Thursday confirmed that the U.S. labor market remained tight, as producer value inflation has began to decelerate, rising 0.5% in April in comparison with a 1.6% surge in March, the Labor Division mentioned.