Yellen, US secretary of the Treasury, has said some labour shortages could take a couple of years to resolve. And according to her, there is no evidence of a wage-price spiral.
According to Martin Wolf, chief economics commentator at the Financial Times. There was no clear evidence to confirm fears that both a tight labour market and soaring prices could spur inflation.
According to her, there’s no evidence that this is happening during Tuesday’s Global Boardroom event. “However, it would be appropriate for the Fed to take action to prevent that from happening.”
As the US economy battles the effects of the Coronavirus pandemic, Yellen says she was not concerned about the unprecedented measures taken to support it fiscally.
Since fiscal stimulus is ebbing, I do not anticipate a downturn in the US economy. Instead, there will be plenty of demand to support growth.”
“We had a big jolt of spending and fiscal stimulus in 2021 because of the American rescue plan and its predecessors, and it won’t happen again.
In other words, fiscal drag will take the place of stimulus in the coming years.
Inflation Still a Concern for the US
While the employment situation was very unusual. She says that inflation was still a concern. A high quit rate indicates a tight labour market; low labour supply is a mystery.
FT’s fourth Global Boardroom virtually takes place from 7 to 9 December. It will include live-streamed discussions and interviews on climate change, economics and geopolitics, working future, finance, ESG, and technology.
COVID-19 control was Yellen’s key to controlling inflation just weeks earlier.
It’s important to realize that this inflation is due to the pandemic. So continuing to make progress against the pandemic is the most important thing we can do to bring inflation down.” She says at the moment.
Bureau of Labor Statistics data shows a 6.2% increase in the US consumer price index, the largest rise since November 1990.
However, in the latest Washington Post-ABC News poll, Biden’s overall approval rating dipped 41%, from 50% in June to 44% in September.
About half of Americans overall, as well as political independents, blame Biden for high inflation.
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