U.S. Treasury Secretary Janet Yellen said on Sunday that she anticipates inflation rates will return to normal in the second half of 2022.
“When do you expect inflation to get back to the 2 percent range, which is considered normal?” CNN’s Jake Tapper asked Yellen on “State of the Union.”
“I expect that to happen next year,” Yellen replied.
“Inflation will remain high into next year because of what’s already happened, but I expect improvement by the middle to end of next year, second half of next year,” she added.
Yellen cited COVID-19-related issues and supply problems as some of the reasons for inflation’s recent growth at its fastest pace in 30 years.
“The COVID crisis markedly diminished spending on services and caused a reallocation of spending towards goods,” Yellen explained. “The supply of goods to Americans has increased substantially, but there’s still pressure there.”
Tapper noted that former President Obama’s Treasury secretary, Larry Summers, has been critical elevated inflation numbers.
“I’ve been alarmed for a long time, and I’m more alarmed now,” Summers said last week in a clip played by the network.
“I think he’s wrong. I don’t think we’re about to lose control of inflation,” Yellen said of Summers’s comments.
“I agree, of course, we are going through a period of inflation that’s higher than Americans have seen in a long time, and it’s something that’s obviously a concern and worrying them, but we haven’t lost control,” she added.
Yellen also noted that inflation numbers on a monthly basis are already “way down below their peaks.”