Treasury Secretary Janet Yellen stated that the U.S. economy is still performing very well and she remains optimistic that inflation will decrease to more typical levels in an interview with Reuters. Despite recent data showing that the U.S. economy experienced its slowest growth in almost two years last quarter, Yellen attributed this to unusual but not concerning reasons.
Yellen also mentioned that she anticipates a decrease in housing inflation as the year progresses, emphasizing that the underlying factors support the idea that inflation will return to more normal levels in the near future. She believes that any fluctuations in inflation are temporary and will eventually stabilize, focusing on fundamental indicators and remaining reassured that the economy is on a solid path towards growth and stability.
In summary, Yellen’s comments provide insight into her perspective on the current state of the U.S. economy and her expectations for its future trajectory, indicating confidence in economic outlook and optimism about inflation decreasing to more typical levels soon.