U.S. Secretary of the Treasury Janet Yellen today issued a statement before Senators that the United States could face “unacceptable levels of inflation” and an appropriate budget stance is needed to help ease inflationary pressures without hurting the economy.
Yellen said in an initial speech to the Senate Finance Committee that details in Democratic President Joe Biden’s proposed spending law could help reduce costs for Americans, including for prescription drugs and clean energy initiatives.
According to Yellen, “We are currently facing macroeconomic challenges, including unacceptable inflation levels as well as pressures related to disruptions caused by the pandemic’s impact on the supply chain and the side effects of supply disruptions to oil and food markets due to the Russian war in Ukraine. ”.
Yellen now also faces criticism from the Republican Party after admitting she was ‘wrong’ last year about the direction of inflation. Unexpectedly the price increase hit a 40 -year high.
Yellen also noted that the Federal Reserve has a primary responsibility for lowering inflation and at the same time giving flexibility to the Fed in setting monetary policy.
"To ease inflationary pressures without compromising the strength of the labor market, an appropriate budget stance is needed to complement monetary policy action by the Federal Reserve," he said.
Yellen also commented on Joe Biden's proposed fiscal 2023 budget, in which it recommends "smart and fiscally responsible investments: reducing the deficit and keeping the economic burden of debt low." The spending was funded by tax increases imposed on companies and the richest Americans to improve tax collection.
Finally he is optimistic and hopes Congress will also implement this global minimum tax as part of its legislative agenda
