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U.S. Treasury's Yellen says Fed can bring down inflation without causing recession

Forex May 12, 2022 01:50PM ET
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© Reuters. U.S. Treasury Secretary Janet Yellen testifies during a U.S. House Committee on Financial Services hearing on the Annual Report of the Financial Stability Oversight Council, on Capitol Hill in Washington, DC, U.S. May 12, 2022. Graeme Jennings/Pool via RE

WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen said that she believes the Federal Reserve can bring down inflation without causing a recession because of a strong U.S. job market and household balance sheets, low debt costs and a strong banking sector

Yellen told a U.S. House of Representatives Financial Services Committee hearing on Thursday that "all of those things suggest that the Fed has a path to bring down inflation without causing a recession, and I know it will be their objective to try to accomplish that."

Yellen said during the hearing on the Financial Stability Oversight Council's work that inflation was the "No.1 economic issue" facing the nation and the Biden administration.

"It's having a substantial adverse impact on many vulnerable households And we are laser-focused on addressing inflation," Yellen said, repeating the Biden administration's initiatives to hold down gasoline prices through large releases of crude oil from the Strategic Petroleum Reserve and efforts to unblock congested U.S. ports.

She deflected several attempts from Republican lawmakers to try to coax her to blame high inflation on the Biden administration's $1.9 trillion COVID-19 relief spending package last year.

Yellen said that various factors were fueling inflation, including spikes in energy prices due to Russia's invasion of Ukraine and continued pandemic-driven supply chain problems, and other countries were also experiencing high inflation.

"It does show that there are factors beyond spending in the United States that are critical to inflation," she said.

Data on Thursday showed that the U.S. labor market remained tight, as producer price inflation has started to decelerate, rising 0.5% in April compared to a 1.6% surge in March, the Labor Department said.

U.S. Treasury's Yellen says Fed can bring down inflation without causing recession
 

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Comments (8)
Thomas Manning
Thomas Manning May 14, 2022 1:01PM ET
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Whole world dealing with inflation… just start going through the procedures to get it down, Worse case we get a short recession…. I’ve experienced a few of em in my life, no pretty but not the end of the world
Kent Harris
Kent Harris May 13, 2022 10:52PM ET
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The moment she admits printing money out of thin air causes inflation then the following day she had an unfortunate mishap and is now pushing up daisies.
Jack Peterson
Jack Peterson May 12, 2022 3:16PM ET
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Go back to sleep Janet “its only transitory” Yellen….. yawn
Albi Ai
Albi Ai May 12, 2022 2:10PM ET
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When Biden and his team are impeached, then life will get better.
Jim Morrison
Jim Morrison May 12, 2022 2:08PM ET
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another genius at the wheel of our government.
Gold Fever
Gold Fever May 12, 2022 1:58PM ET
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Rabbits, hats, what else you got?
ram chandak
ram chandak May 12, 2022 1:57PM ET
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if wti crude not down then all US FED action on inflation will mostly failure
Rob Stone
Rob Stone May 12, 2022 12:50PM ET
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She hasn't gotten anything right thus far. Needs to retire and let new blood run the NEO!!!!
 
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