Biden Administration Closely Monitoring Inflation – Yellen

The United States Secretary of the Treasury, Janet Yellen, said on Thursday that the recent rise in inflation will most likely be temporary, with the economy still recovering from the coronavirus (COVID-19) pandemic.

She further told Congress that the administration of President Joe Biden, as well as U.S. regulators, are following developments in price increases, with the White House, Congress, and the Treasury closely watching inflation and preparing the right tools to address it when needed.

The Treasury Secretary also indicated that the rise in the inflation rate is attributed to the very low levels registered last year due to the pandemic and material shortages.

Yellen’s remarks came while she was addressing the House of Representatives’ Appropriations Committee.

“The recent inflation we have seen will be temporary. It is not something that’s endemic.”

 “I expect it to last several more months and to see high annual rates of inflation through the end of this year.”