By Joshua Caplan
Treasury Secretary Janet Yellen on Tuesday testified before Congress that she expects inflation to remain “high” in the United States.
“I do expect inflation to remain high, although I very much hope that it will be coming down now,” Yellen told the Senate Finance Committee. “I think that bringing inflation down should be our number one priority.”
Yellen also told lawmakers that she and Federal Reserve Chair Jerome Powell “could have used a better word” than “transitory” in reference to the nature of rising costs that have been plaguing Americans for months.
In the same hearing, Yellen addressed President Joe Biden’s efforts to bring down the surging price of gas across the country, saying the administration “has done everything that they can” to reduce such prices. Earlier Tuesday, gas prices notched their tenth day consecutive record high of $4.91 per gallon. Costs have more than doubled since former President Donald Trump left the White House.
Inflation hit 8.3 percent in April under Biden compared to last year.
Last week, Yellen conceded that she was wrong regarding the “path that inflation would take.”
“I think I was wrong then about the path that inflation would take,” Yellen told CNN.
“As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t — at the time — didn’t fully understand, but we recognize that now,” she added.