Despite admitting in May that she was wrong about the path inflation would take, Treasury Secretary Janet Yellen said on Sunday that she expected the Fed’s policies to be “successful.”
“The Fed is tasked with putting in place policies that will bring down inflation. And I expect them to be successful,” Yellen told Chuck Todd on NBC News’ “Meet the Press” on Sunday after downplaying recession fears.
The Biden administration, including Yellen, has previously dismissed concerns about rising costs and said the contributing factors are “temporary.”
“We have had some inflation in recent months, and we will continue — at least on an annual basis — I think through the rest of the year, to see higher inflation rates, maybe around 3 percent,” Treasury Secretary Janet Yellen said of inflation in early June 2021. But personally, I think these are temporary factors.”
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Since then, the US has experienced 13 consecutive months of high inflation. In June, inflation rose to 9.1%, marking the fastest pace of inflation in more than 40 years.
Yellen admitted earlier this year that her predictions about the course inflation would take were wrong. In addition, Fed Chairman Powell made many false statements about his false call for inflation.
Powell on Friday reiterated the Fed’s determination to crush record inflation, saying it was imperative that the global financial system stabilized consumer prices.
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“My colleagues and I are very focused on getting inflation back to our 2% target,” Powell said in introductory remarks to the Federal Reserve’s conference on the role of the US dollar. “The Federal Reserve’s strong commitment to our mandate for price stability contributes to broad confidence in the dollar as a store of value.”
Fox Business Andrew Miller and Megan Henney contributed to this report.