August 13, 2022

Yellen warns US inflation is 'unacceptably high'

Yellen warns US inflation is ‘unacceptably high’

Bali, Indonesia – US Treasury Secretary Janet Yellen He warned that US inflation was “unacceptably high” and said cutting high prices would be Washington’s “top priority”.

The data released on Wednesday showed US consumer inflation rose to 9.1%the highest level since 1981.

“We support first and foremost the Fed’s efforts; what they see as necessary to control inflation,” she said at a press conference in Bali ahead of the G20 finance ministers’ meeting.

Furthermore, we are taking our own steps that we believe will be supportive in the short term to reduce inflation – particularly what we are doing on energy prices and the Strategic Petroleum Reserve.

“As well as the work we are doing to establish Russian oil price ceiling And to avoid any possible future hikes in oil prices.”

Yellen added that nearly half of the price increase in the latest inflation figures came from rising energy costs.

Read more about energy from CNBC Pro

Asked whether lowering inflation was more important than downside risks from higher interest rates and slower growth, Yellen said she believed it was appropriate that lowering inflation should be a top priority because the labor market was “very strong right now.”

Yellen said, however, that higher interest rates could have an indirect effect on other economies.

A strong US dollar would make other currencies relatively weaker, but it could also make their exports cheaper and more attractive.

“On the one hand, it can boost their ability to export which is good for their growth. On the other hand, to the extent that countries have dollar-denominated debt, it can make those debt problems — which are already very severe — even more so,” she said.