U.S. Treasury Secretary Janet Yellen said on Wednesday that inflation should retreat by year end from its current elevated level as supply bottlenecks get worked out, adding she sees little evidence inflation expectations are becoming unanchored.
Asked by Republican Senator John Kennedy if she thought inflation would keep increasing at the 5% year-over-year rate seen last month, Yellen said she thought it would be closer to 2% by late this year or early 2022.
She also said most measures of inflation expectations beyond the next year show it returning closer to that 2% level, which is the level targeted by the Federal Reserve.
Reference: Reuters
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