"I don't believe it's becoming embedded in the U.S. economy," she said, when asked about recent consumer and producer price reports which showed persistent price gains.
"The way inflation would become embedded is if you saw expectations of inflation over the medium term rising to levels that are inconsistent with 2% inflation, and then those higher inflation expectations being built into wages and prices."
Whether current expectations of inflation meet with Secretary Yellen’s view of “embedded” inflation is, of course, a matter of debate. What is less of a debate is that future expectations of inflation are likely to depend greatly on what consumers and investors believe the Federal Reserve is going to do with respect to monetary policy, but also what the Federal government is likely to do with fiscal policy.
If the Federal government is not seen as credibly addressing the various supply chain disruption and other non-monetary pressures on consumer prices, expectations of higher consumer prices are likely to become more of a fixture in the US economic landscape. Inflation expectations rest not just on what consumers believe the Federal Reserve is going to do next, but what the White House is going to do next as well. To keep consumer price inflation from becoming “embedded” in the US economy, Secretary Yellen (and others in the government) need to speak credibly on government spending plans.
What friggin planet is she living on? She's plain stupid or a poor liar. Likely another Leftist Commie helping to dismantle America as we once knew it! When Liberty and Freedom were at the forefront, not spit on and laughed at by the Commie ruling class with a Fascist FBI using Gestapo tactics on Conservatives while ignoring child trafficking, rape, and child abuse.
Yellen needs to be FIRED! She's lied repeatedly, and has absolutely no grasp of the deeper underlying issues plaguing the economy. Has the US ever had a worse treasury secretary?
What friggin planet is she living on? She's plain stupid or a poor liar. Likely another Leftist Commie helping to dismantle America as we once knew it! When Liberty and Freedom were at the forefront, not spit on and laughed at by the Commie ruling class with a Fascist FBI using Gestapo tactics on Conservatives while ignoring child trafficking, rape, and child abuse.
Peter, not aure if it is just me, but your posts keep coming through in "draft" mode, I can't give you a little heart/like.
Nah, she's too busy getting ready for her Nobel Prize.
Our government is run by clowns.
Yellen needs to be FIRED! She's lied repeatedly, and has absolutely no grasp of the deeper underlying issues plaguing the economy. Has the US ever had a worse treasury secretary?
She’s not dumb
She’s bought and paid for.
I don’t believe anything yellen utters. Does anyone? She sucked as fed chairman and she sucks is treasury secretary.
We are run by a confederacy of dunces.
She’s dumber than a Biden.