Yellen Echoes Powell Saying Labor Market Now Less Inflationary

Treasury Secretary Janet Yellen said the labor market is no longer driving inflation in the US economy to the extent it was earlier in the pandemic recovery, echoing earlier comments by Federal Reserve chief Jerome Powell.

The job market was “initially very tight” during the post-Covid rebound, but “now we have a strong labor market, one with fewer pressures that would create inflationary concern,” Yellen told lawmakers on the House Financial Services Committee in Washington on Tuesday. She said the shift came after a surge in labor supply.