Yellen Believes Inflation Will Eventually East in Months

The U.S. Treasury Secretary, Janet Yellen, is worried about housing costs, expecting high inflation to remain for several months before easing.

The housing market remains in a better position compared to the time prior to the 2008 market crash, Yellen told CNBC

“It’s a very different phenomenon but I do worry about affordability and the pressures, higher housing prices will create for families that are first-time homebuyers.”

“I think we will have several more months of rapid inflation so I’m not saying that this is a one-month phenomenon. But I think over the medium term, we’ll see inflation decline back to a normal level. But of course, we have to keep a careful eye on it.”

“I have a lot of respect for the Federal Reserve and it’s important for them to make independent judgments about what’s appropriate. I think that the Fed has done a good job,” said the former Fed Chair.