During a second term of Jerome powell as president of the United States Federal Reserve, the central bank will have an important role to play in the long term to ensure that inflation does not become “endemic,” the Treasury secretary told CNBC on Monday, Janet yellen.
Yellen stated that he believed the nomination of Powell and Lael Brainard’s as vice president would garner broad support in Congress and she was confident in her ability to “make good judgments” to balance the mandates of the Fed to maintain maximum employment and price stability.
“I think we have to worry about inflation. It has reached the levels that worry most Americans who see it and their pockets when they go to the grocery store to buy food or fill their car pools,” he said. Yellen, who chaired the Fed from 2014 to 2018.
He added that he believes it is due to an imbalance between supply and demand and the economic bottlenecks that need to be resolved, and expressed confidence that the price increase will decrease.
“In the long term, Fed must play an important role in ensuring that this does not become endemic. And I know he can be counted on to do it, “he said about Powell.
The economy of USA It is experiencing a streak of accelerated growth that will continue into next year and it is up to the Fed to determine how much monetary support is needed, given falling unemployment, the accumulation of household savings and other factors, Yellen said.
“What we do see in the market, with a strong dollar and generally low long-term interest rates, is confidence that inflation is not something that becomes long-lasting or endemic in the US economy. USA, and that’s important. “
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