US Treasury Secretary Janet Yellen said in an interview to ABC program "This Week" that the US economy had recovered and the labor market had achieved full employment. She is confident that the country is on the path to steady and stable growth. Recession is not inevitable under such conditions. However, Mrs Yellen admits that US economic growth will slow down.
Moreover, Yellen noted that US inflation remained extremely high. Therefore, US President Joe Biden’s key goal is to reduce soaring prices.
Annual inflation hit a 40-year high of 7.9% in March. In May, consumer prices soared to the highest level since December 1981, i.e. from 8.3% to 8.6% .
Biden believes the main reason for US galloping inflation is the aftermath of sanctions against Russia. The US President has asked Congress to pass a bill that will cut transportation costs and reduce the cost of goods.
The Federal Open Market Committee announced at its June meeting that it would raise the benchmark interest rate by 0.75% to a range of 1.5% to 1.75%. According to the Federal Reserve officials, this dramatic increase was caused by accelerating inflation in the US.
