Washington (AP) – Treasury Secretary Janet Yellen assured Congress that the recent spike in inflation has been watched very carefully by the Biden administration, but reiterated that any increase will be temporary.
Yellen, who testified about Biden’s $ 6 trillion budget to the Senate Finance Committee, recently received a 5% consumer price hike from Republicans in May, the biggest increase since 2008. We m asked about the sharp rise in inflation.
Yellen said no one wanted to relive the double-digit inflation of the 1970s, and the government took recent inflation “very seriously.” However, she said she still believes the price hike reflects temporary factors associated with the economy recovering after a long outage due to a pandemic.
“Most economists believe the current surge in inflation reflects the difficulty of reopening a closed economy,” Yellen said of the buying patterns and bottlenecks that caused the shortfall. He pointed out that there was a big change.
Yellen said prices fell when the pandemic erupted over a year ago, especially in the service sector, such as airlines and hotels. Now that the country has reopened, these snoopers have returned to a more normal level, âshe said.
âWe believe our economy is on the right track to return to more normal operations,â Yellen said. So far, she has said consumer and business expectations for future inflation are firmly set. This will mitigate the threat of some sort of wage price spiral as seen in the 1970s.
Yellen also assures the Commission that the Treasury, which oversees the Internal Revenue Service, is working to determine how information on taxes paid by the wealthiest Americans was obtained by ProPublica. did.
A nonprofit research journalism organization reported that the richest Americans pay less in taxes than regular workers – an average of 15.8% of adjusted gross income.
South Dakota Senator John Thune called last week’s report “one of the most widespread breaches in history” of government data that undermines US confidence in the IRS.
Mr Yellen said the case was considered a very serious situation and the Treasury referred the matter to the Department of Justice and the Director of Taxation at the Department of the Treasury.
âProtecting taxpayer data is absolutely a top priority,â Yellen said. “If there is any action we should take to strengthen the protection of this information, you … have my word that we are doing it.” “
Yellen said in his testimony on Biden’s budget that the government is trying to overcome decades of damaging economic trends that have contributed to growing income inequality.
âThese destructive forces – differences in wages and geographic regions, reduced labor market participation, growing climate change, sustained racial inequalities – have all combined to bring tens of millions of Americans together. An economy that is stuck in our prosperous areas, âYellen said.
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Yellen: Administration closely monitors inflation | WGN 720 radio