US Treasury's Yellen: inflation will continue to ease over time

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US Treasury's Yellen: inflation will continue to ease over time
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Rent and housing costs are keeping U.S. inflation higher than preferred but consumer price pressures will continue to come down over time, Treasury Secretary Janet Yellen said on Tuesday, as a top White House adviser cited what she called 'tremendous progress' in bringing down inflation.

U.S. Treasury Secretary Janet Yellen testifies before the House Financial Services Committee regarding the department’s annual report on the international financial system, on Capitol Hill in Wash ington, U.S. July 9, 2024. REUTERS/Ken Cedeno WASH INGTON, July 9 - Rent and housing costs are keeping U.S.

"I believe that it will continue to come down over time. Rents and housing costs continue to leave it higher than we would ideally like," Yellen told the U.S. House panel on financial services. Lael Brainard, chair of the White House National Economic Council and a former vice chair of the Federal Reserve, said the Biden administration is encouraged by continued progress on lowering inflation, but President Joe Biden would keep fighting to lower the cost of living for working families.

The inflation target is set in reference to the Personal Consumption Expenditures price index, which as of May was increasing at a 2.6% year-over-year rate.

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