US Treasury Secretary Janet Yellen predicted that high inflation in the United States is a temporary phenomenon and will continue until the end of the year and then decline.
According to Bloomberg News, Minister Yellen attended a so-called hearing on the House Appropriation Committee on the 27th and said, "The judgment right now is that the recent inflation we have seen will be temporary."
"I expect this to last a few more months and see high annual inflation by the end of the year," says Yellen.
The US producer price index and the wholesale price index in April both rose 6.2% from the same month last year, exceeding the market forecast, and recorded the largest increase since the start of the statistics of the Ministry of Labor in 2010.
Accordingly, controversy has arisen as to whether it is a side effect of expanding monetary policy at the level of zero interest rate by releasing astronomical funds to cope with the Corona 19 recession.
Yellen said the rise in inflation was due to price fluctuations in response to changes in spending related to the pandemic and supply chain bottlenecks.
This remark seems to be in line with the Biden administration's explanation that the recent steep inflation was due to the supply shortage of some items and the base effect of the low inflation rate last year.
Secretary Yellen also took a negative stance on the idea that President Joe Biden's massive infrastructure investment and other spending projects will have a major impact on inflation.