Treasury Secretary Janet Yellen says inflation could be high for a year
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Janet Yellen (U.S. Treasury Secretary) speaks at an interview during the National Association of Business Economics’ annual meeting in Arlington Virginia on Tuesday September 28, 2021.
Amanda Andrade-Rhoades | Bloomberg | Getty Images
Janet Yellen, Treasury Secretary, said that Americans are likely to see an additional year of very high inflation due to Russia’s invasion in Ukraine. This contradicts her previous forecast. price acceleration would moderate in the months ahead.
“I feel there’s a lot more uncertainty about what’s going with Russia and Ukraine,” Yellen stated to CNBC’s closing bell.
And I think it is exacerbating inflation. She continued, “I don’t know what will happen in the second quarter of the year.” “We are likely to continue seeing another year with 12-month inflation numbers that remain extremely uncomfortably high.”
The comments of the Treasury secretary came hours after Labor Department had published their latest gauge about how fast American consumers are experiencing higher prices. It was revealed that consumer prices rose 7.9% in the 12 monthThis is the fastest rate of inflation in 1982, with s ending February.
These remarks come months after Yellen said to CNBC that inflation would moderate towards the end 2022, as supply-chain hiccups were resolved and consumer demand increased.
On Thursday, she was reluctant to give a similar prediction. Yellen claimed that Russia’s invasion of Ukraine created uncertainty which has led to an increase in the prices for several commodities, including crude oil. wheat.
Crude oil futuresThe price of West Texas crude oil for April delivery jumped to near $130 per barrel earlier in the week, hitting multi-year highs as the Kremlin escalated its attack on Kyiv. The price of West Texas oil for April delivery has fallen slightly since then, trading at $105 per barrel the last time it was seen on Thursday.
However, this is still an increase of $30 per barrel compared to three months ago.
“We’ve seen a significant increase in gas prices, and I’m guessing that next month will see more evidence of the impact of Putin’s war against Ukraine on U.S. inflation,” Yellen stated.
“Russia, in addition to exporting oil … Ukraine and Russia are major producers of wheat,” she added. We are seeing an impact on food prices and that could have severe consequences for some countries in emerging markets.
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