US inflation levels are not expected to decrease to acceptable levels until the latter part of 2022, Treasury Secretary Janet Yellen said Sunday.
The prediction comes as rising prices strain Americans’ wallets at grocery stores and fuel pumps amid high energy demand, already exacerbated by the coronavirus pandemic wreaking havoc on the economy. Asked when she expects inflation — which was 5.4% at the end of September — to get back to the 2% range considered acceptable, Yellen told CNN’s Jake Tapper that it would be the middle to the second half of 2022.
Along with rising inflation, 4.3 million Americans quit their jobs in August — a record number as the supply chain of everyday goods faces an ongoing bottleneck at US ports, fueled in part by the worker shortage. At the end of August, there were 10.4 million job openings, according to the Job Openings and Labor Turnover Survey (JOLTS) report.
US Treasury Secretary, Janet Yellen, suggests imposing a tax on unrealized capital gains.
This means stock gains will be taxed even when they have not been sold.
It also means that taxes will be owed when the value of a home appreciates, even though it has not been sold. pic.twitter.com/H4ObEgZURe
— Mr. Whale (@CryptoWhale) October 25, 2021
Secretary Yellen attempted to downplay growing concerns over rising inflation, saying she doesn’t believe the Biden Administration is losing control over inflation. She also pushed back against criticism from former Treasury Secretary Larry Summers, who has been ringing the alarm on inflation rates and spending.
— Lawrence H. Summers (@LHSummers) October 25, 2021
“I think he’s wrong, I don’t think we’re about to lose control of inflation,” she said, although she agreed that the US is going through a period of inflation that is higher than before. “It’s something that’s obviously a concern and worrying them, but we haven’t lost control.”
It’s been a week of many productive meetings with valuable international partners as we address critical issues like international taxation, global health, inclusive recovery, & fighting climate change. Great to connect with counterparts at @WorldBank @IMFNews & @g20org meetings. pic.twitter.com/CFwDoudSSc
— Secretary Janet Yellen (@SecYellen) October 15, 2021
Watch Secretary Yellen’s conversation with Jake Tapper, below.