By Andrea Shalal
DUBLIN (Reuters) – US Treasury Secretary Janet Yellen said on Monday she did not think the US economy was overheating and that while inflation is higher than in recent years, it is related to disruption of supply chains in the context of the Covid-19 pandemic.
Last week’s data showed that consumer spending in the US rose solidly in September, which, along with the drop in Covid-19 infections and the recovery in consumer confidence, bodes well for a recovery in economic activity. in the last trimester.
While inflationary pressures are mounting, Yellen reiterated that he believes the price increases are transitory.
“I wouldn’t say the US economy is overheating, we’re still five million jobs below where we were before the pandemic and labor force participation has decreased and the reasons are related to the pandemic,” Yellen said at a news conference in Dublin.
Yellen predicted that labor supply constraints and supply bottlenecks will ease as the pandemic comes under control, noting that an increase in demand for durable goods in the US came at a time when it was difficult to get some of those goods.
“I believe that as we overcome the pandemic, these pressures will lessen and, in that sense, I believe inflation is transitory, and we don’t have an economy that is overheating in the long run.”
Yellen’s post says US economy isn’t overheating first appeared in ISTOÉ MONEY.
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