U.S. Treasury Secretary Janet Yellen said “unacceptably high prices” could continue through the end of the year, while Cleveland Fed President Mester said it would take two years for inflation to fall back to the The Fed’s 2% inflation target.
Yellen said on Sunday (19th): “Inflation has been very high in our country so far this year, and it may continue until the end of the year.” She expected the economy to slow down, but a recession is not completely inevitable because Americans have a lot of savings. , and the labor market is strong.
U.S. inflation surged to 8.6 percent in May, the highest level in 40 years, a sign that price pressures are increasingly weighing on the economy and prompted the Federal Reserve to raise interest rates three yards last week, the largest increase since 1994.
Yellen said high inflation was a global problem, not a local problem, including energy supply disruptions caused by the war in Ukraine and export disruptions caused by China’s restrictions, and “these factors are unlikely to disappear immediately.”
Mester echoed Yellen’s sentiment on Sunday, saying that the pace of U.S. economic growth will slow and the risk of recession will increase. She has the right to vote on monetary policy this year.
“Recession risks are rising, in part because monetary policy should have turned earlier,” Mester said on CBS’ “Face the Nation.” good”.
Mester said that while monetary policy could target excess demand in the economy, it would take more time for the supply side to “return to a better balance.” “We’re not going to see 2 percent inflation right away, it will take a few years, but inflation will come down,” she said.