Treasury Secretary Janet Yellen Predicts Decrease in Inflation

Treasury Secretary Janet Yellen informed U.S. lawmakers that while rent and housing costs continue to prop up inflation, overall consumer prices are projected to decline over time. Factors such as supply chain issues and labor market tightness have alleviated, contributing to a decrease in inflationary pressures.

Treasury Secretary Janet Yellen informed U.S. lawmakers on Tuesday that rising rent and housing costs are sustaining higher-than-preferred inflation levels. However, Yellen remains optimistic, citing eased inflationary factors, including supply chain issues and labor market tightness.

Yellen assured members of the U.S. House panel on financial services that consumer prices are expected to decrease over time. “I believe that it (inflation) will continue to come down over time. Rents and housing costs continue to leave it higher than we would ideally like,” she stated.

Yellen highlighted a previous tight labor market, acknowledging it now as strong but with reduced inflationary pressures. “Although the labor market was initially very tight, now we have a strong labor market, but one with fewer pressures that would create inflationary concern, so inflation is coming down,” she said.