Today’s News

U.S. Treasury Secretary Janet Yellen addressed the House Financial Services Committee, discussing ongoing inflation issues.  

She noted that while rent and housing costs remain high, contributing to sustained inflation, other inflationary pressures like supply constraints and labor market tightness have eased.  

This shift, Yellen emphasized, should lead to a continued decrease in consumer price pressures over time. She expressed confidence that inflation would eventually align closer with desired levels, stating, “I believe that it will continue to come down over time. Rents and housing costs continue to leave it higher than we would ideally like.” 

“Although the labor market was initially very tight, now we have a strong labor market, but one with fewer pressures that would create inflationary concern, so inflation is coming down,” she said. 

Lael Brainard, chair of the White House National Economic Council and former vice chair of the Federal Reserve, echoed this optimism. She highlighted the administration’s satisfaction with the progress made towards reducing inflation, referencing months of data trending towards the Fed’s 2% target. 

“Tremendous progress,” she remarked, citing a recent inflation rate of 2.6%. Brainard also pointed out specific categories such as food and gasoline, where prices are showing signs of stability or decrease, especially notable during the July 4 holiday period. 

Despite these improvements, Brainard stated “But we also know that Americans are still squeezed by the cost of living,”. She outlined President Joe Biden’s continued efforts to address these challenges, including promoting affordable housing, curbing rent increases, and supporting tax credits for first-time homeowners. 

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