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Treasury Secretary Janet Yellen acknowledged during a hearing before the Senate Finance Committee that the United States faces unacceptable levels of inflation and an adequate budget stance is needed to help cushion inflationary pressures without undermining the economy.
“I hope that inflation will remain high, although I hope it will go down now” Yellen said. “I think reducing inflation should be our number one priority.”
The hearing was an opportunity for lawmakers to pressure Yellen on the causes of Inflation: When It Might Ease and the Administration’s Plans for Its Negative Impacts on Americans.
“Now we are entering a transition period from one of historical recovery to one that may be marked by stable and constant growth”, he said.
“Making this change is a central piece of the president’s plan to control inflation without sacrificing the economic gains we have achieved,” he added.
Last week, Yellen said in an interview with CNN who did not fully understand the impact that large unforeseen shocks and supply bottlenecks would have on the economy. ro.
“I think I was wrong then about the path that inflation would take ”, he said.
The Congressional Budget Office released an economic outlook this month saying that high inflationwill persist into next year, which will likely cause the federal government pay higher interest rates on your debt.
The agency expects that the consumer price index increases by 6.1% this year and by 3.1% in 2022.
This forecast suggests that inflation will decelerate from current annual levels of 8.3%
, but would still be well above a 2.3% long-term benchmark.
Yellen said during the hearing that Congress should also play a role in reducing l prices by enacting legislation to increase taxes on the very wealthy, and by passing text for a global tax deal that has stalled on Congress.
The global tax deal is designed to subdue big business multinationals at a tax rate of 40% wherever they operate.
It would also allow part of the profits of the largest global companies to be taxed in countries where they do business online, but may not have a physical presence.
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