Treasury Secretary Janet Yellen said on Monday, November 20, that the United States is making significant progress as part of efforts to reduce the inflation rate in this country.
Janet Yellen, in the context of characterizing the mentioned actions of the American authorities to curb the inflationary dynamic, separately noted the stable state of affairs in the labor market. The Treasury Secretary said the said area remains strong.
According to the results of October, the annual inflation rate in the United States, as measured by the government consumer price index, was fixed at 3.2%. This indicator reached a peak value exceeding the mark of 9% last year. The growth dynamic in this case began after the Federal Reserve System began implementing a policy of rapidly increasing interest rates. These actions were aimed at reducing price pressure.
Experts note that the growth in the cost of goods and services in the United States currently has a lower degree of intensity compared to last year’s dynamic, but emphasize that the process of price increases continues. In this context, an important circumstance is that many essential goods on the US market are currently much more expensive than before the coronavirus pandemic.
Janet Yellen, during a conversation with media representatives, said that there is progress in efforts to reduce inflation, but Americans face higher costs of goods and services compared to what they are used to. She also noted that the decline in the intensity of the inflationary dynamic was achieved while maintaining a strong economy and a favorable situation in the labor market. According to her, this is good news for residents of the United States.
Janet Yellen also paid attention to the issue of relations between Washington and Beijing during her conversation with media representatives. According to her, China and the United States recognize the possibility of cooperation. In early November, Janet Yellen held meetings with the Deputy Prime Minister of the Asian country He Lifeng in San Francisco. As a result of this communication, the Treasury Secretary stated that it was concluded that Beijing and Washington should strive for healthy economic relations and work more constructively together. She also noted that the distancing of the two economic systems from each other will have consequences for the whole world.
The Treasury Secretary paid special attention to the fact that the administration of American President Joe Biden is making investments that will improve the quality of life in many regions of the United States.
Another statement by Janet Yellen was the affirmation that the high level of interest rates creates additional problems for debt reduction. She also noted the need to increase the level of financial responsibility and a sustainable approach to spending and taxation.
In September, the Treasury Secretary said that economic growth in the United States should be slowed down to a pace that is more in line with its potential level. According to her, this is necessary to return inflation to the target, since the economic system operates at full employment. She also noted that the imbalance of supply and demand in the labor market has decreased. According to her, this is a good sign for the economy.
As we have reported earlier, Joe Biden Erases $127 Billion in Student Debt.
