U.S. Treasury Secretary Janet Yellen admitted her guilt for downplaying the threat posed by inflation in her public statement over the past year.
The acknowledgment is the latest indication that the US government’s expectations for the economy to return to normal have been threatened by the ongoing pandemic and war in Ukraine.
Yellen said there have been major and unexpected shocks to the economy that have boosted energy and food prices as well as supply disruptions that have severely affected U.S. growth.
Earlier, Yellen and other White House officials once told that inflation was a temporary side effect to the economy returning to normal from the Covid-19 outbreak.
However, inflation continued to rise further until it hit a 40 -year high a few months later causing the Federal Reserve (Fed) to rush to raise interest rates more aggressively.
Economic indicators have recently boosted confidence that inflation may have peaked in March, although economists warn that it will take some time before inflation returns to normal.
In response, the White House launched a month -long effort to signal a heavy focus on the economy.
President Biden also shared priorities with the Fed in lowering inflation and giving Chairman Jerome Powell the freedom to take the necessary steps.
