Sec. Yellen: ‘As Chair Powell Indicated Himself, Both of Us Probably Could Have Used a Better Term than Transitory’

THUNE Madam Secretary welcome ░░░░░░░░ the committee As you ░░░░░░░░ President Biden recently wrote ░░░░░░░░ Wall Street Journal op ░░░░░░░░ that tackling inflation is ░░░░░░░░ quote top economic priority ░░░░░░░░ I think that s ░░░░░░░░ welcome development for the ░░░░░░░░ to acknowledge that inflation ░░░░░░░░ a problem It wasn ░░░░░░░░ that long ago that ░░░░░░░░ Biden and top economic ░░░░░░░░ were claiming the extraordinary ░░░░░░░░ in Americans cost of ░░░░░░░░ was merely transitory I ░░░░░░░░ you ve responded to ░░░░░░░░ questions on this subject ░░░░░░░░ but do you still ░░░░░░░░ inflation which remains near ░░░░░░░░ 40 year highest transitory ░░░░░░░░ do you expect an ░░░░░░░░ period of raised inflation ░░░░░░░░ Well when I said ░░░░░░░░ inflation would be transitory ░░░░░░░░ I was not anticipating ░░░░░░░░ a scenario in which ░░░░░░░░ would end up contending ░░░░░░░░ multiple variants of Covid ░░░░░░░░ would be scrambling our ░░░░░░░░ and global supply chains ░░░░░░░░ I was not envisioning ░░░░░░░░ on food and energy ░░░░░░░░ we ve seen from ░░░░░░░░ s invasion of Ukraine ░░░░░░░░ as Chair Powell indicated ░░░░░░░░ both of us probably ░░░░░░░░ have used a better ░░░░░░░░ than transitory There s ░░░░░░░░ question that we have ░░░░░░░░ inflation pressures that inflation ░░░░░░░░ really our top economic ░░░░░░░░ at this point and ░░░░░░░░ it s critical that ░░░░░░░░ address it So I ░░░░░░░░ expect I do expect ░░░░░░░░ to remain high although ░░░░░░░░ very much hope that ░░░░░░░░ will be coming down ░░░░░░░░ THUBE And and and ░░░░░░░░ President s budget to ░░░░░░░░ that point projects inflation ░░░░░░░░ 4 7 percent for ░░░░░░░░ which seems to be ░░░░░░░░ entirely unrealistic assumption given ░░░░░░░░ inflation the first half ░░░░░░░░ year has been well ░░░░░░░░ that rate Has the ░░░░░░░░ s 4 7 percent ░░░░░░░░ assumption proved accurate for ░░░░░░░░ or should that number ░░░░░░░░ revised higher Yellen Well ░░░░░░░░ re in the process ░░░░░░░░ producing a new forecast ░░░░░░░░ the mid session review ░░░░░░░░ numbers aren t locked ░░░░░░░░ in but it s ░░░░░░░░ to be higher THUNE ░░░░░░░░ hopefully we won t ░░░░░░░░ to wait long for ░░░░░░░░ right I mean when ░░░░░░░░ that review come out ░░░░░░░░ I m not sure ░░░░░░░░ the date is.”