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Yellen Says Substantial Inflation Slowdown Expected Next Year

EconomyJan 21, 2022 12:09PM ET
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© Bloomberg. Janet Yellen, U.S. Treasury secretary, speaks during the U.S. Conference of Mayors winter meeting in Washington, D.C., U.S., on Wednesday, Jan. 19, 2022. Yellen said she doesn't expect the omicron variant of the coronavirus to disrupt the ongoing economic recovery.

(Bloomberg) -- U.S. Treasury Secretary Janet Yellen delivered a rosy outlook for the U.S. economy, of fading inflation and the potential for higher long-term growth.

While acknowledging that price rises represent “a valid policy concern,” Yellen said on Friday that “it’s important to note that professional forecasters think that inflation will substantially abate next year.” She made the remarks in a speech delivered by video to the World Economic Forum’s Virtual Davos Agenda.

She also called the U.S. labor market “exceptionally strong” and called forecasts for 3.3% growth in 2022 a “stunning economic and policy achievement.”

The Treasury secretary’s remarks contrast with widespread public sentiment in the U.S. that the economy is on the wrong track, amid worries that high inflation will continue to erode the buying power of households.

While growth and employment has bounced back strongly from the collapse in early 2020 at the outset of the coronavirus pandemic, inflation has roared to an almost 40-year peak.

Public Dissatisfaction

Consumer prices rose 7% in 2021, their biggest 12-month jump since 1982, driven by supply constraints connected to the pandemic and government stimulus meant to support families and businesses through the economic fallout.

President Joe Biden has seen his approval ratings tumble amid public dissatisfaction with the state of the economy. A recent CBS News poll showed his rating for handling the economy was at 38%, with two-thirds of Americans thinking the president isn’t focused enough on the burden of inflation. Meantime, the University of Michigan consumer sentiment index in November hit the lowest in almost a decade.

©2022 Bloomberg L.P.

Yellen Says Substantial Inflation Slowdown Expected Next Year
 

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Comments (19)
James White
James White Jan 21, 2022 8:41PM ET
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of course when no one has jobs or money!
Thomas Simpson
Thomas Simpson Jan 21, 2022 1:52PM ET
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slowing inflation, transitory inflation, temporary supply chain interruption, etc.. all associated with Bidens fantasy economy.
Tom Sc
Tom Sc Jan 21, 2022 1:45PM ET
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what, did u expect her to say we're *****
michael polic
michael polic Jan 21, 2022 1:44PM ET
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right, hiking rates while the USA has $29 trillion in debt. no matter what they do it's going to hurt.
henrique heine
henrique heine Jan 21, 2022 1:43PM ET
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Why people keep giving credit to people that DO NOT deserve ANY. Lies... lies lies.
S S Shet
pingo_0070 Jan 21, 2022 1:32PM ET
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the question is ... on what basis she says so... the other guy was saying " inflation is transistory " till it broke the ceiling ... now they have to taper leading to tantrum ..
Peter ONeill
Peter ONeill Jan 21, 2022 1:32PM ET
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Oldfashioned Owl  Just like Trump and twitter ;) haha
William Abernathy
William Abernathy Jan 21, 2022 1:29PM ET
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And Biden said a few days ago that he had a GREAT first year. What a *** A lot of buyer's remorse.
ben sc
ben sc Jan 21, 2022 1:28PM ET
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yeah, bc we will be in a recession. folks, the only way out of this inflation is a recession. this regime won't commit to helping ease inflationary pressures by increasing energy production and getting more workers in the workforce. addtl the vaccine mandates are forcing production lower.
Peter ONeill
Peter ONeill Jan 21, 2022 1:10PM ET
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HAHAHAHAHA these are the same 'Professionals forecasters' who said in Q1 2020 that inflation would be falling by Q2 2021, they then claimed in Q2 2021 that it would be falling by Q3 2021. Then in Q4 2021 they FINALLY admitted they got the whole thing wrong and inflation was not 'transitory'. But TRUST THEM NOW when they now say inflation will be falling by Q1 2023 HAHAHA...what a load of *****(sometimes inflation is physiological in nature - so the Fed and Yellen think if they keep saying the same thing it might magically happen). The markets finally starting to see and feel the BS from Yellen and Powell.
Jim Morrison
Jim Morrison Jan 21, 2022 1:09PM ET
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lmao the spy dumped right as she started talking. what a 🤡
 
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