She says she regrets saying inflation was “transitory.”
Secretary of the Treasury Janet Yellen shared this week that she believes rent prices will go down overall for the rest of this year. “I have every expectation that the single biggest contributor to inflation is going to be moving down over this year,” she said.
Secretary Yellen cautioned that it would take time for the consumer price index to reflect such a decrease, though she still expects rent to decrease as new leases are signed in 2024.
“I don’t think we’re going to see stagflation,” the treasury secretary said. “Most forecasters believe we’re on a path where inflation will come down over time.”
Stagflation is a devastating economic status that occurs when high inflation rates combine with unemployment and stagnant consumer spending. The Treasury Department believes that interest hikes imposed by the Federal Reserve in the past two years were enough to counter it.
Secretary Yellen acknowledged the decline in inflation was slower than expected. “I regret saying it was transitory,” she said. “It has come down, but I think transitory means a few weeks or months to most people.”
As the Lord Leads, Pray with Us…
- For discernment for Treasury Secretary Yellen as she assesses the state of the U.S. economy.
- For Chair Jerome Powell and members of the Federal Reserve as they consider lowering interest rates.
Sources: Reuters, Fox Business
