By Yasin Ebrahim

Investing.com — Treasury secretary Janet Yellen stated Thursday that Russia-Ukraine conflict is likely to increase the rate of inflation in next month. However, she indicated that she was confident that the Federal Reserve will be able to control inflation and provide a soft landing to help the U.S. stay out of recession.  

“Inflation” is a serious problem that needs to be addressed, Yellen told CNBC in an interview.  

She also indicated that the former Fed Chair believes the central bank can bring down inflation without overshooting its tightening monetary policies, which have historically been a factor in creating a recession. According to the Treasury Secretary, “I believe it’s appropriate for them be active but a soft land is what I expect.” 

These comments came as investors are focusing on the Fed ahead of next week’s central bank meeting. This is because they have seen data that shows inflation has remained at the highest level since 1982.

“The risk is that the inflation we are enduring now could become more entrenched, as it did in the 1970s. That is why the Fed is so wedded to raising rates starting in March,” said Diane Swonk, chief economist at Grant Thornton.

The Russia-Ukraine War will increase the cost of essential commodities like oil, wheat, and precious metals. This will ensure that inflation does not slow down. 

“My guess is that next month we’ll see further evidence of an impact on U.S. inflation as a result of Putin’s war on Ukraine,” Yellen said. “[W]You are most likely to witness another year in which the 12 month inflation numbers will remain extremely high.

Following the end of their two-day meeting in Mar., the Federal Reserve expects to raise its benchmark rate. 15-16.