WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen told senators on Tuesday that she expected inflation to remain high and the Biden administration would likely increase the 4.7% inflation forecast for this year in its budget proposal.
During a Senate Finance Committee hearing, Yellen said that the United States was dealing with “unacceptable levels of inflation,” but that she hoped price hikes would soon begin to subside.
U.S. Consumer Price Index inflation has been tracking above 8% in recent months, the highest readings in over 40 years and well above President Joe Biden’s administration’s forecast for its fiscal 2023 budget.
But another metric, the core Personal Consumption Expenditures price index excluding volatile food and energy costs, has begun to cool, edging down to 4.9% in April
“I do expect inflation to remain high although I very much hope that it will be coming down now,” she said.
The woman that caused the current inflation, and told us we were not at risk for inflation, just told us that the inflation is not acceptable.
Indiana gas prices jump roughly 30 cents in 24 hours at some locations
JANET YELLEN: “I very much hope that [inflation] will be coming down.”
Quite the strategy. pic.twitter.com/Jx8I9YE4Ul
— RNC Research (@RNCResearch) June 8, 2022
Fed tracker shows brink of recession
- The Atlanta Federal Reserve’s GDPNow tracker is now pointing to an annualized gain of just 0.9% for the second quarter, down from an estimated 1.3% increase less than a week ago.
- With first-quarter growth down 1.5%, a second consecutive quarter of negative growth meets a rule-of-thumb definition for recession.
- The National Bureau of Economic Research, the official arbiter, says a recession can include two straight negative GDP prints, but that’s not necessarily the case.
There are people who claim that prices rise because of 'speculation' and 'greed'. But they're wrong 👇
'Commodities Do Not Cause Inflation. Money Printing Does.' – @dlacalle_IA t.co/n1CheUQVkO pic.twitter.com/6UnXdaugJq
— Fabian Wintersberger (@f_wintersberger) June 8, 2022
An active #inflation blame game with the Administration, rather than the Fed, on the receiving end
What makes all this even more frustrating is that the widening of inflation concerns–social, economic, political, financial, and institutional–was predictable/partially avoidable. pic.twitter.com/dTsNQC7N9o
— Mohamed A. El-Erian (@elerianm) June 8, 2022
economy is collapsing.. so why is the stock market up? credit – low/medium household keep spending using credit/personal savigs
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) June 7, 2022
"Despite the 50% rise in US gasoline prices, and
88% in EU, there is likely another leg higher due to a lack of global refining capacity." – JPM
— zerohedge (@zerohedge) June 8, 2022
The White House, increasingly frustrated by inflation, has launched a flurry of activity, from President Biden’s meeting with the fed chief to his unusual op-ed for the Wall Street Journal.