The Secretary of the Treasury of the United States, Janet Yellensaid Tuesday that he believes the inflation is coming down “significantly”, and that with inflation expectations under control it should not be particularly difficult to finish the job of easing price pressures.
“I see no reason, on the path we are currently on, why inflation should not gradually decline to coherent levels” with the Federal Reserve’s 2% target, he said Yellen at the Wall Street Journal CEO Summit in Washington, DC
The economy continues to function “practically at full employment“, he claimed.
2% goal
Yellen said Tuesday that he does not believe that the “last section” to return inflation to the Federal Reserve’s 2% target will be especially difficult.
Inflation “is certainly slowing down significantly”Yellen noted. He added that he saw no reason “why inflation should not gradually decline to levels that are in line with the Fed’s mandate and objectives”.
Yellen’s comments come after data was released on Tuesday showing that U.S. consumer prices rose slightly in November.
In the year-on-year comparison, the headline CPI rose 3.1%, while the so-called core consumer price index, which excludes food and energy costs, advanced 4% compared to a year earlier for the second consecutive month. . Economists prefer the underlying reading as a better indicator of the inflationary trend.
The latest data highlights the instability of the process of bringing inflation back on target, and could reinforce the Fed’s resolve to keep interest rates elevated in the near term.
While price pressures have largely eased from multi-decade highs, a still-strong labor market continues to spur consumer spending and the broader economy.
Last week, data was released showing that the US labor market unexpectedly strengthened in November with rebounds in employment and wages. The unemployment rate fell to 3.7% and labor participation increased. Monthly wage growth rose more than expected.
The officials of the Fed They begin a two-day meeting on Tuesday, where they are expected to keep interest rates unchanged again.
The president of the FedJerome Powell has repeatedly rejected growing bets of rate cuts early next year, emphasizing that policymakers will act cautiously but keep the option of raising rates again on the table.
With information from Reuters and Bloomberg
Source: Gestion
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