‘Last Mile’ in Returning Inflation to Fed’s 2 Percent Target Won’t Be Difficult: Janet Yellen

Treasury Secretary Janet Yellen does not think the “last mile” of returning inflation to the Federal Reserve’s 2 percent objective will be harder, noting that price pressures are “certainly meaningfully coming down.” While speaking at the Wall Street Journal CEO Council Summit in Washington, D.C., on Dec. 12, Ms. Yellen asserted that there is no cause for concern that inflation will not eventually meet the U.S. central bank’s mandate and targets. The annual inflation rate slowed to 3.1 percent in November, down from 3.2 percent in October, matching the consensus estimate. The core Consumer Price Index (CPI), which excludes the volatile energy and food components, was unchanged, at 4 percent. While this is considerably down from the June 2022 peak of 9.1 percent, economists note that the road to 2 percent continues to be a sluggish journey. In addition, cumulative inflation since 2021 has been north of 17 percent, adding to households’ financial strain....