Yellen insists the US economy is not overheating

The United States Secretary of the Treasury, Janet YellenHe said on Monday that he does not believe that the US economy is overheating and that, although inflation is higher compared to recent years, this increase is related to the effects of the Covid-19 pandemic.

Last week’s data showed that US consumer spending rose solidly in September, which coupled with falling Covid-19 infections and the recovery in consumer confidence bodes well for a rebound in economic activity. in the last trimester.

While inflationary pressures are widening, Yellen reiterated that he believes the price increases are transitory.

“I wouldn’t say United States economy it is currently overheating, we are still 5 million jobs below where we were before the pandemic and the workforce participation has decreased and the reasons are related to the pandemic, “Yellen said at a news conference in Dublin.

Yellen estimated that labor supply constraints and supply bottlenecks will ease as the pandemic is brought under control, noting that an increase in demand for durable goods from the United States occurred around the time it was difficult to obtain certain products.

“I think that as we overcome the pandemic, these pressures are released and, in that sense, I think the inflation it’s transitory and we don’t have an economy that, in a long-term sense, is overheating. ”