Yellen predicts the Fed’s anti-inflation policies will be ‘successful’, after mislabeling them as ‘transitional’

Latest / July 24, 2022 / Admin / 0

Former Chairman of the Council of Economic Advisers Kevin Hassett discusses whether the United States is in a recession and criticizes the White House’s handling of the economy on “Kudlow.”

Although she admitted in May that she was wrong about the path inflation would take, Treasury Secretary Janet Yellen said Sunday she expected Federal Reserve policies to be ” successful”.

“The Fed is responsible for putting in place policies that will bring inflation down. And I expect them to succeed,” Yellen told anchor Chuck Todd on NBC News’ “Meet the Press” Sunday after minimized fears of recession.

FILE: Treasury Department Secretary Janet Yellen testifies before the House Ways and Means Committee during a hearing on the proposed budget for fiscal year 2023 on Capitol Hill in Washington, June 8, 2022. (AP Photo/Jose Luis Magana, File/AP Newsroom)

The Biden administration, including Yellen, has previously dismissed concerns about rising costs and said the contributing factors were “transient.”

“In recent months we have seen some inflation, and we – at least on an annual basis – will continue, I believe for the rest of the year, to see higher inflation rates, perhaps around 3 %,” the Treasury Secretary said. Janet Yellen spoke about inflation in early June 2021. “But I personally think that represents transitory factors.”

USED CARS COST $10,000 MORE THAN ‘NORMAL’ AS INFLATION RAGES

Since then, the United States has experienced 13 consecutive months of high inflation. In June, inflation soared to 9.1%, marking the fastest pace of inflation in over 40 years.

Yellen admitted earlier this year that his predictions about the path inflation would take were wrong. Federal Reserve Chairman Powell also issued several mea culpas following his bad call for inflation.

On Friday, Powell reiterated the Fed’s determination to crush record inflation, saying it is imperative that the global financial system stabilizes for consumer prices to stabilize.

CLICK HERE TO GET THE FOX BUSINESS APP

“My colleagues and I are very focused on getting inflation back to our 2% target,” Powell said in his keynote address to a Fed conference on the role of the US dollar. “The Federal Reserve’s strong commitment to our price stability mandate contributes to widespread confidence in the dollar as a store of value.”

Fox Business Andrew Miller and Megan Henney contributed to this report.