(MENAFN) In a recent statement, US Treasury Secretary Janet Yellen offered insights into the current state of inflation and economic strength in the United States. Despite acknowledging the impact of a housing supply shortage on declining inflation rates, Yellen expressed optimism about underlying price pressures. She emphasized that inflation expectations remain under control and highlighted the strength of the labor market as factors that do not pose tangible inflationary threats.
Yellen also addressed the recent wage increase data in the US, noting a 0.2 percent rise in average hourly wages in April. While she characterized this increase as consistent with expectations, she cautioned against placing excessive emphasis on a single data point. Yellen indicated that although the wage growth was slightly lower than needed to reach the targeted inflation rate of 2 percent, it aligns with broader economic projections.
Regarding housing cost inflation, Yellen acknowledged that progress has been slower than anticipated due to supply shortage issues. Despite this, she maintained confidence in the overall strength of the US economy, even in light of weaker-than-expected growth data in the first quarter of the year. Yellen reassured that the economy is operating at full capacity and expressed optimism about inflation returning to normal levels in due course.
In conclusion, Yellen affirmed the robust performance of the US economy, emphasizing that while certain economic indicators may fall short of expectations, the underlying growth measures remain strong. She conveyed a sense of confidence in the nation's economic trajectory, indicating that any deviations from anticipated figures do not raise significant concerns.
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