Janet Yellen Brings Good News about the US Economy. After a historic spike in inflation triggered by the Covid-19 pandemic, United States (US) Treasury Secretary Janet Yellen said that inflation in Uncle Sam’s country was under control.
This was conveyed by Yellen at the Economic Club of Chicago on Thursday (25/1) by saying that current inflation is short-term, approaching the lowest level ever seen in the survey. Based on data released on Thursday morning local time (25/1), it shows that the closely monitored measure of inflation reached 2% for the second quarter in a row.
Janet Yellen Brings Good News about the US Economy. This figure is also in line with the target of the US central bank, namely the Federal Reserve (The Fed), even though inflation surprisingly strengthened in the fourth quarter of 2023 at 3.3%.
Then, Yellen also said that people in Uncle Sam’s country are benefiting from wage growth which now exceeds inflation. SHe also emphasized that the living conditions of US citizens were increasingly advanced.
Separately, Yellen also said that productivity gains, a key component of growth, might accelerate. According to him, this helps explain how strong economic activity does not prevent inflation from slowing.
The Minister of Finance also saw no signs of rising inflation again in today’s data. However, she cautioned that it was too early to say that productivity would increase in the long term. She said that although the state debt burden was still under control, this would be a threat to fiscal sustainability if interest rates remained high for a longer period of time.