U.S. Treasury Secretary Janet Yellen on Monday told CNBC, Jerome Powell while taking office for the second time has important role to pay over the long term to ensure inflation does not become “endemic”.
Yellen further added she believes Powell and Lael Brainard as vice chair could win broad support from the congress and she firmly believes in them to make good judgments and balance FED’s mandate on maximum employment and price stability.
“I think we do have to be concerned about inflation. It’s reached the levels that concern most Americans who are seeing it and their pocketbook when they go to the store to buy food or to fill up their cars,” said Yellen, who chaired the Fed from 2014 to 2018.
She also noted supply chain bottleneck would needs attention and expressed confidence that inflation would subside.
“Over the longer run, the Fed needs to play an important role to make sure that this doesn’t become endemic. And I know that he can be counted on to do that,” she said of Powell.