Yellen Rejects Concern About Inflation Becoming Entrenched
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Janet Yellen
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Treasury Secretary Janet Yellen dismissed the idea that high inflation is becoming embedded in the US economy, pointing to moderate expectations for price gains over the longer haul.
“The way inflation would become embedded is if you saw expectations for inflation over the medium term rising to levels inconsistent with 2% inflation -- and then those higher inflation expectations being built into wages and prices, Yellen said Friday in answering reporters’ questions after an event in Herndon, Virginia. “And I see no sign of that.”