U.S. Treasury Secretary Janet Yellen told senators on Tuesday that she expected inflation to remain high and that the Biden administration would likely increase the 4.7% inflation forecast for this year in its budget proposal.
Yellen added that both she and Federal Reserve Chair Jerome Powell “probably could have used a better term than transitory” in describing inflation that they thought would fade quickly.
Yellen has come under fire from Republicans for saying last year that she thought inflation would be transitory and quickly subside.
She will face more tough questions on the issue in a House committee hearing on Wednesday.
She testified as the World Bank warned of a heightened risk of “stagflation” – the 1970s mix of feeble growth and high inflation.
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