U.S. Treasury Secretary Janet Yellen says it is time to “stop saying inflation will be temporary”.
According to the New York Times on the 3rd local time, Secretary Yellen attended an event hosted by Reuters on the same day and said, “I am prepared to not use the word transitory for inflation right now.”
“I agree that[the word temporary]was not an appropriate explanation for inflation,” he added.
Yellen’s remarks coincide with Fed Chairman Jerome Powell’s recent Federal Open Market Committee (FOMC) statement that inflation will not be temporary.
Chairman Powell said on the 1st that he would not use the word temporary in relation to inflation, saying, “I think we should discuss whether it is appropriate to end the cut in asset purchases a few months earlier.”
Yellen also cautioned against the economic impact of Omicron.
“It could disrupt the supply chain and cause inflation,” he said.
“I hope it will not be a factor that significantly slows economic growth,” he added.