Yellen predicts Fed’s anti-inflation policies will be ‘successful,’ after wrongly calling it 'transitory'
Inflation surged above 9% in June, the highest in more than 40 years
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Despite admitting in May she’d been wrong about the path inflation would take, Treasury Secretary Janet Yellen said Sunday she expected the Federal Reserve’s policies to be "successful."
"The Fed is charged with putting in place policies that will bring inflation down. And I expect them to be successful," Yellen told anchor Chuck Todd on NBC News’ "Meet the Press," Sunday after downplaying recession fears.
FILE: Department of the Treasury Secretary Janet Yellen testifies before the House Ways and Means Committee during a hearing on Proposed Fiscal Year 2023 Budget on Capitol Hill in Washington, June 8, 2022. (AP Photo/Jose Luis Magana, File / AP Newsroom)
The Biden administration, including Yellen, previously dismissed concerns about rising costs and said the contributing factors were "transitory."
"We have in recent months seen some inflation, and we — at least on a year-over-year basis — will continue, I believe through the rest of the year, to see higher inflation rates, maybe around 3 percent," Treasury Secretary Janet Yellen said about in inflation in early June 2021. "But I personally believe that this represents transitory factors."
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Since then, the U.S. has experienced 13 straight months of high inflation. In June, inflation surged to 9.1%, marking the fastest pace of inflation in more than 40 years.
Yellen admitted earlier this year that her predictions about the path inflation would take had been wrong. Federal Reserve Chairman Powell has additionally delivered several mea culpas over his wrong inflation call.
On Friday, Powell reiterated the Fed’s determination to crush record-high inflation, saying that it is imperative for the global financial system for consumer prices to stabilize.
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"My colleagues and I are acutely focused on returning inflation to our 2% objective," Powell said in introductory remarks to a Fed conference on the role of the U.S. dollar. "The Federal Reserve’s strong commitment to our price-stability mandate contributes to the widespread confidence in the dollar as a store of value."
Fox Business Andrew Miller and Megan Henney contributed to this report.