US Yellen: "Inflation Unacceptably High... Price Stability Is Top Priority"

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Janet Yellen, U.S. Treasury Secretary, reaffirmed on the 14th (local time) that inflation in the United States is "unacceptably high" and that price stability is the top priority.

According to the economic media CNBC, Secretary Yellen made these remarks at a press conference held in Bali, Indonesia, where the Group of Twenty (G20) finance ministers' meeting was taking place. When asked whether lowering inflation is more important than the risk of recession caused by high interest rates and slowing growth, she responded, "Since the current labor market is very strong, it is appropriate that lowering inflation should be the top priority."

The U.S. Consumer Price Index (CPI) inflation rate for June, released by the U.S. Department of Labor the previous day, recorded 9.1%, the highest level since 1981. With inflation far exceeding market expectations, forecasts are pouring in that the Federal Reserve's tightening will accelerate further.

Secretary Yellen emphasized, "We support the Fed's efforts above all else to do what is necessary to curb inflation." She also mentioned measures that are expected to help lower inflation in the short term, such as the price cap on Russian crude oil. She added that nearly half of the recent CPI increase is due to high energy costs.