Yellen: I’m ‘in Good Company in Failing to See That Inflation Would Increase and Remain as Persistent as It Has’

During an interview with CNBC released on Tuesday, Treasury Secretary Janet Yellen said that she “was in good company in failing to see that inflation would increase and remain as persistent as it has.” And blamed “a series of shocks that virtually no one could have predicted” like Russia’s invasion of Ukraine and supply issues for the inflation problems.

Yellen responded to some Republicans calling for her resignation for incorrectly forecasting inflation by stating, “I think, through a series of shocks that virtually no one could have predicted, including Russia’s invasion of Ukraine, that have pushed up prices and a series of supply challenges that most people did not anticipate, including me, I think I was in good company in failing to see that inflation would increase and remain as persistent as it has. The Fed clearly understands the problem it faces. And we’re supportive of the actions that they’re taking to bring it down. It is President Biden’s top economic priority.”

In May, Yellen stated that there had been “unanticipated and large shocks to the economy that have boosted energy and food prices, and supply bottlenecks that have affected our economy badly” that she, at the time, “didn’t fully understand.”

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