U.S. Treasury Secretary Yellen Highlights Ongoing Progress Against Inflation

Treasury Secretary Janet Yellen stated that rent and housing costs are keeping U.S. inflation above preferred levels, but consumer price pressures will continue to ease. She emphasized improvements in supply issues and labor market tightness. White House adviser Lael Brainard noted significant progress, with inflation nearing the Fed's 2% target.

Treasury Secretary Janet Yellen has highlighted that rent and housing costs are sustaining U.S. inflation at higher levels than preferred. However, she reassured that consumer price pressures will diminish over time due to easing supply issues and reduced labor market tightness.

Speaking to the U.S. House of Representatives Financial Services Committee, Yellen asserted, '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 also noted that while the labor market remains strong, it no longer exerts substantial inflationary pressures.

Lael Brainard, chair of the White House National Economic Council, reinforced Yellen's sentiments by citing the Biden administration's efforts to lower the cost of living. She pointed out that several months of data confirm inflation is nearing the Fed's 2% target, with recent data showing a rate of 2.6%. Efforts to bring down food and gasoline prices have shown progress, yet the administration acknowledges that Americans still feel the strain of high living costs.

(With inputs from agencies.)