(May 27): US Treasury Secretary Janet Yellen said she continues to see this year’s burst in inflation as temporary, though likely to last through the end of 2021. “My judgment right now is the recent inflation we’ve seen will be temporary, it’s not something that’s endemic,” Yellen said Thursday in response to questions from lawmakers. The US consumer price index rose 4.2% in the year through April, the highest reading in more than a decade. Yellen said the spike was caused by price changes driven by consumer spending shifts related to the pandemic and to supply-chain bottlenecks. Steve Womack, a Republican from Arkansas who asked Yellen about rising prices, said he expects Biden’s proposals will in fact contribute to inflation.

Source: The Edge Markets May 27, 2021 16:18 UTC