Janet Yellen says U.S. isn't losing control of inflation
$S&P 500 Index(.SPX.US$ $Dow Jones Industrial Average(.DJI.US$ $NASDAQ 100 Index(.NDX.US$ U.S. Treasury Secretary Janet Yellen said she doesn't believe that the U.S. is losing control over inflation, pushing back against criticism from former Treasury Secretary Larry Summers, who has been warning about the effects that spending is having on inflation.
"I think he's wrong. I don't think we're about to lose control of inflation," Yellen said on CNN on Sunday morning.
She expects that inflation, which was running at a 5.4% Y/Y rate at the end of September, will start to get back to the 2% range in the middle of 2022, she told CNN's Jake Tapper in an interview.
"On a 12-month basis, the inflation rate will remain high into next year because of what's already happened. But I expect improvement ... by the middle to end of next year, second half of next year," she said.
Her comments echo those that Fed Chair Jerome Powell made on Friday, that high inflation is likely to last "well into next year."
Prices have spiked up due to supply chain disruptions and labor shortages as demand increases with the reopening of the economy.
Yellen's view contrasts with Twitter CEO Jack Dorsey's who warns that hyperinflation will change everything. "It will happen in the US soon and so the world," he said in a Twitter thread.
In the latest job openings and labor turnover report released earlier this month, there were more than 10M job openings in August, and a record 2.9% of workers quit their jobs.
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