By Andrea Shalal
DUBLIN (Reuters), – U.S. Treasury secretary Janet Yellen stated Monday that although inflation is up in the United States, it’s due to the COVID-19 Pandemic disruption.
Last week’s data showed solid growth in U.S. consumer expenditure in September. This, along with declining COVID-19 infection rates and rising consumer confidence, bodes well for an increase in economic activity during the fourth quarter.
Inflation pressures are increasing, but Yellen stated that price increases are temporary.
“I wouldn’t say that the US economy is overheating,” Yellen said at a Dublin news conference.
Yellen predicts that the supply of labor will be less tight and that there will be fewer supply bottlenecks as the pandemic gets under control. Yellen also pointed out that the surge in U.S. demand for durable goods came at a difficult time to source those goods.
“I think that inflation will release as soon as the pandemic is over. We don’t need an economy in which there is a long-term sense of excess heat.”
(Reporting Andrea Shalal by Padraic Hpin, editing by Jon Boyle & Chizu Nomiyama
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