Making evaluations about the economy at the event organized by The Wall Street Journal, Yellen emphasized that the US economy is strong. Yellen stated that the decrease in the gross domestic product (GDP) in the first quarter attracted attention, and that the data in question did not reflect the strength of the economy.
Pointing out that consumer spending and investment remain strong, Yellen noted that the US outperformed other countries.
Stating that inflation is very high, Yellen said, “It is necessary to bring it down.” said. Emphasizing that the global economy is struggling with risks, Yellen said, “Russia’s unwarranted war in Ukraine causes commodity prices to rise. It could have a worldwide cost.” he said.
Stating that slower growth can be seen in Europe, Yellen said that this situation may also affect the USA.
“I believe we will see solid growth next year with inflation falling, but there are clear risks to the outlook,” Yellen said. said.
Reminding that it is the duty of the US Federal Reserve (Fed) to keep inflation low, Yellen noted that the Fed is determined to do this.
“Fed will need to be resourceful and also lucky for a soft landing,” Yellen said. made its assessment.
Stating that inflation is not rooted in the US economy, Yellen stated that there are many supply shocks related to the COVID-19 outbreak, and therefore inflation is seen to rise globally.
Yellen, emphasizing the need to increase energy supply, stated that the European Union (EU) stopping oil imports from Russia may increase oil prices.
Treasury Secretary Yellen added that if the war continues, more measures will be taken against Russia.