Will inflation ever decline?
During a recent interview with CNN, President Biden’s Treasury Secretary Janet Yellen claimed that she believes the skyrocketing level of inflation America is dealing with is only temporary. Yellen further explained that while she doesn’t think inflation will come down in the next few months, it will eventually come back down.
According to Breitbart, Yellen explained that inflation is only temporary. She then attempted to calm the American people by saying monthly inflation rates have come down from what they were four or five months ago. She explained that what Americans are experiencing in regards to inflation was caused by the impact of the COVID pandemic. “It’s hugely boosted spending on products, on goods and diminished spending on services,” Yellen said.
She then explained that the pandemic has resulted in a massive demand for semiconductors and related supplies.
Yellen then said, “As people get back to work, as we defeat the pandemic, and as demand shifts back to services and as supply has a chance to adjust, I believe that price increases will normalize and we’ll see lower monthly inflation rates, I think, by the second half of the year, annual inflation rates will begin to decline toward their more normal level of around 2%.”
Currently, economists have mixed emotions about inflation and don’t whether things will get better or worse by this time next year. The Biden Administration remains hopeful however.