Friday, Treasury Secretary Janet Yellen advised that “there will be some continued shortages” heading into the holiday season as a result of inflation.
“CNN Newsroom” anchor Wolf Blitzer asked Yellen if inflation is “going to get worse before it gets better.”
Yellen predicted energy prices would “begin to moderate in the months ahead,” and price increases across the board would “subside.”
“Well, there will be some continued shortages,” Yellen stated. “Semiconductors are in very short supply. That’s caused the prices of both new and used vehicles to surge. Energy prices have gone up, but I believe energy prices will begin to moderate in the months ahead. That’s what market signals and fundamentals suggest.”
“Compare this with what happened in 2008 after the financial crisis when it took years to get employment back to normal levels,” she added. “The unemployment rate has declined from a peak of almost 20% now to just 4.8%, and it will fall further in the months ahead. So, prices have increased somewhat. As I say, I believe those price increases will subside, but income growth has been very, very strong. And wages are going up, especially for low-skilled workers in the service sector.”
Follow Trent Baker on Twitter @MagnifiTrent
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