Treasury Secretary Janet Yellen believes that inflation will “remain high”

• “Treasury Secretary Janet Yellen admitted on Tuesday that she and Federal Reserve Chair Jerome Powell “could have used a better word” than “transitory” to describe the predicted run of inflation in the United States.
• “I do expect inflation to remain high although I very much hope that it will be coming down now,” Yellen told the Senate Finance Committee during a hearing on the Fed’s current budget request. “
• I think that bringing inflation down should be our number one priority.

Treasury Secretary Janet Yellen admitted on Tuesday that she and Federal Reserve Chair Jerome Powell “could have used a better word” than “transitory” to describe the predicted run of inflation in the United States. She also expressed hope that it will soon be on the decline.

“I do expect inflation to remain high although I very much hope that it will be coming down now,” Yellen told the Senate Finance Committee during a hearing on the Fed’s current budget request. “I think that bringing inflation down should be our number one priority.”

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Legislators and the public have increasingly accused the Federal Reserve and Treasury Department for allowing inflation to reach record highs, most notably an 8.3 percent increase in consumer prices over the past year.

She told CNN last week that she did not completely comprehend the economic impact of unexpected major shocks and supply constraints.

“Look, I think I was wrong then about the path that inflation would take,” she said.

The session provided senators with an opportunity to question Yellen on the reasons of inflation, when it could begin to fall, and the administration’s efforts to stop the suffering felt by Americans.

“We now are entering a period of transition from one of historic recovery to one that can be marked by stable and steady growth,” she said. “Making this shift is a central piece of the president’s plan to get inflation under control without sacrificing the economic gains we’ve made.”

In response to Yellen and Powell’s earlier statements that the US inflation situation was transient, Yellen admitted, “Both of us could have used a better word than transitory. There’s no question that we have huge inflation pressures. Inflation is really our top economic problem at this point.”

Inflation has begun to moderate, but it is still expected to remain much above the Fed’s 2 percent objective through the end of the year.

The Congressional Budget Office issued an economic forecast this month, predicting that strong inflation will continue into next year, forcing the federal government to pay higher interest rates on its debt.

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According to the nonpartisan agency, the consumer price index would grow 6.1 percent this year and 3.1 percent in 2023. This estimate indicates that inflation will decline from current annual levels of 8.3 percent, but it will remain much higher than a long-term baseline of 2.3 percent.