Yellen Cautions American Inflation “Unacceptably High”

United States (US) Treasury Secretary Janet Yellen said the US will make bringing down increasing prices it’s “top priority” because inflation in the country is “unacceptably high.”

In a news conference in Bali ahead of the Group of 20 finance ministers’ meeting, Yellen said they’re supportive of the Fed’s efforts, “what they deem to be necessary to get inflation under control”.

“Beyond that, we are taking our own steps which we believe will be supportive in the short term to get inflation down — particularly what we’re doing on energy prices and the Strategic Petroleum Reserve,” Yellen added.

Additionally, Yellen said, “we are working to implement the price ceiling on Russian oil and prevent potential future rises in oil prices.”

High energy prices, according to the most recent inflation figures, accounted for nearly half of the price increase.

Yellen responded that she thought it was appropriate that the top priority should be to bring down inflation as the labor market is “currently very strong” in response to the question of whether bringing down inflation was more important than the risk of a recession caused by higher interest rates and slowing growth.

However, Yellen warned that an increase in interest rates could affect other economies.

While a strong U.S. dollar would make other currencies appear weaker in comparison, it may also lower the cost and increase the appeal of their exports.

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