Misjudging the inflation disaster! U.S. Treasury Secretary Yellen admits, "I don't fully understand the situation!"

On June 1, U.S. Treasury Secretary Yellen stated regarding inflation that her previous views were wrong, "I didn't completely understand the situation," but she mentioned that curbing rising prices is President Biden's top priority, hence she supports the actions taken by the Federal Reserve to achieve this goal.

According to a report by Bloomberg, Yellen has directly admitted that she made a wrong decision last year, predicting that rising inflation would not lead to subsequent issues.

"My judgment on the path of inflation was wrong. The economy experienced unexpected massive shocks, not only driving up energy and food prices, but severe supply chain bottlenecks that significantly impacted our economy, which I did not fully understand at the time."

After a meeting on inflation issues with Biden, Yellen, and Federal Reserve Chair Powell, it was stated that the economy has been impacted by new variants of the coronavirus, China's lockdowns, and the Russia-Ukraine conflict.

In April, consumer prices in the U.S. rose by 8.3%, nearing the 40-year high set in March.

Biden's approval ratings have sharply declined due to high inflation. He stated that he will give the Federal Reserve space, saying, "I will not interfere with their critical work."

Yellen also explicitly stated that she does not expect the U.S. to have the same robust employment opportunities during the economic recovery, "We don't expect to see the same employment growth numbers in the future, but are seeking stability and steady growth while reducing inflation."

Yellen believes that the most severe core inflation has already slowed down, which is encouraging, and she expects it to continue to slow down in the coming months.

However, Yellen pointed out that European countries have recently taken measures to limit Russian oil imports, leading to a global increase in oil prices, "We cannot rule out further impacts."

This article is authorized to be reprinted from Horizon News Network