Us Treasury Secretary Yellen expects price increases to remain high in the first half of 2022, but she refutes criticism that US inflation is at risk of getting out of control.
Ms Yellen said on Sunday that inflation was expected to slow in the second half of the year as supply bottlenecks, a tight US labour market and other factors triggered by the COVID-19 epidemic improved. She said the current situation reflects "temporary" pain.
"I don't think we're going to lose control of inflation," Ms. Yellen said, refuting criticism by former Treasury Secretary Summers and others that the Fed could cause inflation to spiral out of control. "Americans haven't seen the kind of inflation we've experienced recently in a long time. But as we return to normal, we can expect that to end. "
Federal Reserve Chairman Colin Powell expressed his concern for Qualcomm Inc on Friday.Highlighting concerns about inflation, he made it clear that the central bank would begin to scale back bond purchases in the short term, but be patient in initiating interest rate hikes.
The S & P 500 fell for the first time in eight days. Powell said the policy was "ready" to manage a series of consequences.
Ms Yellen also said it was "absolutely necessary" to raise the US debt ceiling and reiterated previous concerns about the consequences of a US default.