Treasury Secretary Janet Yellen stuck with her assessment that elevated U.S. inflation will prove “transitory,” while acknowledging it will take longer for the pace of price gains to return to normal.

By Bloomberg

13 Oct

Treasury Secretary Yellen And Fed Chair Powell Testify Before House Financial Committee On Coronavirus And CARES Act

Janet Yellen, U.S. Treasury secretary, speaks during a House Financial Services Committee hearing in Washington, D.C., U.S., on Thursday, Sept. 30, 2021. The Treasury secretary this week warned in a letter to congressional leaders that her department will effectively run out of cash around Oct. 18 unless Congress suspends or increases the debt limit.

“I believe it’s transitory, but I don’t mean to suggest these pressures will disappear in the next month or two,” Yellen said in an interview on CBS Evening News with Norah O’Donnell that aired Tuesday evening.

Yellen attributed the price spikes in many goods to the “huge disruption” from the Covid-19 pandemic to global supply chains, an effect that would slowly dissipate.

“There’s no reason for consumers to panic over the absence of goods they’re going to want to acquire at Christmas,” she added.

Business Maverick

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