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U.S. Treasury Secretary Janet Allen said that the reason the US inflation is rising sharply is a temporary phenomenon caused by the coronavirus. The remarks came amid prospects that the U.S. could raise interest rates faster than expected due to inflation concerns, and interpreted as a path with the message that interest rate hikes will be cautious.
This is Kim Jong-won's correspondent from New York.
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US Treasury Secretary Janet Yellen said this is a temporary phenomenon as inflation concerns in the U.S. are growing as inflation in all sectors, from food to consumer goods and raw materials, surges.
[Janet Yellen/US Treasury Secretary: I believe the recent inflation is temporary. It is not chronic.]
Inflation in the leisure sector, which had been excessively lowered by the blockade of economic activity last year due to an unprecedented pandemic situation, has recently rapidly returned to its original state. Is that this is happening.
[Janet Yellen/U.S. Treasury Secretary: The corona pandemic has significantly changed the consumption pattern of the service industry and consumer goods.]
As the US inflation rate hit the highest in 11 years last month, controversy is arising that the astronomical finances the US government made to overcome the corona are causing side effects. Minister Yellen, who had been shown, said that this time, inflation will not continue, and there is a prospect that he will be cautious about raising interest rates.
Minister Yellen predicts that prices will continue to rise for the next few months until the end of this year.