Yellen: administration is watching inflation closely

Treasury Secretary Janet Yellen is providing assurances to Congress the recent jump in inflation is being watched very closely by the Biden administration, but said again that such increases appear temporary

WASHINGTON -- Treasury Secretary Janet Yellen assured Congress that the recent jump in inflation is being monitored very carefully by the Biden administration, but said again that any increase will prove temporary. Testifying about Biden's $6 trillion budget proposal before the Senate Finance Committee, Yellen was asked Wednesday by Republican lawmakers about recent sharp gains in inflation, including a 5% rise in consumer prices for the 12 months ending in May, the biggest jump since 2008. Yellen said no one wants to relive the double-digit inflation of the 1970s and that the administration is taking the recent inflation “very seriously.” But she said she still believes the price gains reflect temporary factors related to re-opening the economy after the prolonged shutdowns due to the global pandemic. “Most economist think the current burst of inflation we have seen reflects the difficulties of re-opening an economy that has been shut down,” Yellen said, noting huge swings that have occurred in buying patterns and bottle necks that have caused shortages.