US Treasury Secretary Janet Yellen said Monday that she does not believe that the US economy is overheating and that, while inflation is higher compared to recent years, this increase is related to the effects of the COVID-19 pandemic.
Data from last week showed that US consumer spending rose solidly in September, which coupled with falling COVID-19 infections and a recovery in consumer confidence bodes well for a rebound in economic activity. in the last trimester.
While inflationary pressures are widening, Yellen reiterated that he believes the price increases are transitory.
“I would not say that the US economy is currently overheating, we are still 5 million jobs below where we were before the pandemic and labor force participation has decreased and the reasons are related to the pandemic.“, said Yellen at a press conference in Dublin.
Yellen estimated that labor supply constraints and supply bottlenecks will ease as the pandemic is brought under control, noting that an increase in demand for durable goods from the United States occurred around the time it was difficult to obtain certain products.
“I think that as we overcome the pandemic, these pressures are released, and in that sense, I think inflation is transitory and we don’t have an economy that, in a long-term sense, is overheating.”.
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