U.S. Treasury Secretary Janet Yellen noted in an interview with CNBC that the U.S. economy is creating jobs at a rapid pace but the labour market is becoming more normalized. She also admitted that wages continue increasing but at a slower rate.
Regarding price pressures, Yellen said that a big part of inflation is in the housing market and rents. She also noted that low-income families are being impacted by inflation the most as the costs of critical things like housing, healthcare, and childcare have gone up a lot.
In addition, the official said that interest costs on debt are a big burden. She also acknowledged that she favours higher taxes on billionaires and added that, in her view, it is impossible to cut most of discretionary spending and defence.