White House, Treasury watching inflation closely, Yellen says

FILE PHOTO: FILE PHOTO: U.S. President-elect Joe Biden announces members of his economic policy team in Wilmington, Delaware
FILE PHOTO: U.S. Treasury Secretary-designate Janet Yellen in Wilmington, Delaware, U.S., December 1, 2020. REUTERS/Leah Millis/File Photo

May 27, 2021

WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen said on Thursday she believes recent rise in inflation will prove temporary and that there is still slack in the economy, but that the White House, Congress, and Treasury are watching it close and have the tools to address it if needed.

“The recent inflation we have seen will be temporary, it’s not something that’s endemic,” Yellen told the House Appropriations Committee, noting that what’s driving it is a rebound from very low measures last year and shortages of materials. “I expect it to last several more months and to see high annual rates of inflation through the end of this year.”

(Reporting by David Lawder and Ann Saphir; Editing by Chizu Nomiyama)