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Economics

Yellen Sees Path for Cooler Prices Without Jump in Jobless Rate

  • Treasury chief says labor market among tightest in US history
  • Jobless rate doesn’t have to rise as high at 5%, she says
Treasury Secretary Janet Yellen at the Atlantic Festival on Sept. 22.

Treasury Secretary Janet Yellen at the Atlantic Festival on Sept. 22.

Photographer: Kevin Dietsch/Getty Images

US Treasury Secretary Janet Yellen continues to see a path to lower inflation without a significant increase in unemployment, even as the Federal Reserve maintains an aggressive rate-hike strategy that could trigger a growth slowdown or a recession.  

Fed officials probably “need to ease some labor-market pressure, but I certainly don’t want to say that the unemployment rate has to rise” as high as 5%, she said at an event hosted by The Atlantic magazine in Washington Thursday.