U.S. Treasury Secretary Janet Yellen said on Sunday (Oct. 24) that the United States has not lost control of inflation and that she expects inflation levels to return to normal in the second half of 2022.
In an interview with CNN, Yellen said spending on Joe Biden’s infrastructure and “Build Back Better” plans would be allocated over the next 10 years, but she did not say whether this would increase inflation, Reuters reported on 24 October.
“I don’t think we’re going to lose control of inflation,” Yellen said.
“On a 12-month basis, inflation will stay high in 2022 because of what’s already happened. But I expect things to improve by mid to late 2022,” Yellen added.
Supply chain hurdles have been plaguing the US and other countries as the economy reopens to spur a surge in demand.
“As we make further progress on the pandemic, I expect these barriers to subside. As conditions improve, Americans will return to the labour market,” she said.