The US Treasury Secretary was previously President of the Federal Reserve.
(Photo: AP)
Washington US Treasury Secretary Janet Yellen has admitted that she was wrong in her assessment of rising inflation in the US. “I think I was wrong at the time about the development of inflation,” Yellen told US broadcaster CNN on Tuesday. She underestimated the unforeseen and major shocks to the economy that have pushed up energy and food prices, and global supply chain shortages. The US economy is struggling with the consequences of Russia’s invasion of Ukraine and the recent corona outbreaks in China.
US President Joe Biden has declared the fight against the high inflation of 8.3 percent to be his top domestic priority. In view of the rapidly rising prices, the US Federal Reserve recently took the largest interest rate step in 22 years and raised the key interest rate by half a point to the new range of 0.75 to 1.0 percent. Fed Chair Jerome Powell has signaled increases of the same magnitude for the June and July meetings. Biden has assured Powell in the face of high inflation that his administration will not interfere in Fed monetary policy.
More: The US President and the Chairman of the Federal Reserve have met for the third time. Both are under pressure from inflation.
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