US Treasury Secretary Janet Yellen admitted she was “wrong” last year when she suggested that US inflation would not be a long-term problem. “I was wrong about the trajectory of inflation,” Yellen told CNN. “There were unforeseen and significant economic shocks that triggered an increase in energy and food prices, as well as supply disruptions that negatively affected our economy, and at that moment I did not fully understand this,” she said. Yellen last year, before the situation in Ukraine and the emergence of new variants of the coronavirus, said that inflation was a “small risk”, noting that she did not expect it to be a “problem”. Now, she said that the administration of US President Joe Biden is focused on taking measures to curb rising inflation, and this, among other things, includes confidence in the US Federal Reserve System (FRS). “The Fed is taking action that needs to be taken. They have to decide what to do,” she said. Biden met yesterday with Fed Chairman Jerome Powell and Yellen to discuss the outlook for the US economy and the global economy. Following the meeting, Biden said that he “does not intend to interfere in the extremely important work” of the Fed. Source: FINMARKET.RU

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