WASHINGTON, Sept 23 (AFP): It is possible to bring down record-high inflation in the United States while maintaining a healthy labor market, US Treasury Secretary Janet Yellen said Thursday.
Her comments come a day after the Federal Reserve hiked interest rates by 75 basis points for the third straight time, with Fed Chair Jerome Powell warning that cooling inflation would be painful for the US economy.
But "I believe there is a path through this that can succeed in bringing down inflation while also maintaining... a strong labor market," Yellen said. "And I very much hope that the Fed will be able to succeed in doing that."
Speaking at the Atlantic Festival, Yellen said there is likely "some inflationary pressure" caused by the shortage of workers in the labor market, which has driven wages up.
It's also the Fed's job to "address demand-supply imbalances," she said.
The Fed also updated its economic forecasts at the end of its monetary policy meeting Wednesday. It anticipates a slowdown in activity caused by the rate hikes, leading to a slightly higher increase in unemployment than previously predicted.
US can fight inflation without sinking job market: Yellen
FE Team | Published: September 23, 2022 22:38:03
US can fight inflation without sinking job market: Yellen
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