Treasury Secretary Janet Yellen has said that she believes US inflation remains too high but that a soft landing is on the horizon. In an exclusive interview with CNN's Melissa Bell, Yellen stated that the Federal Reserve's efforts to date to bring down inflation while maintaining a strong labor market appear achievable. She said that "so far, so good" and that although there are risks, the Fed is committed to continuing the process of bringing inflation down to more normal levels.
Yellen Addresses Domestic Matters in Exclusive Interview
In her interview with Bell, Yellen addressed domestic matters such as inflation and the debt ceiling breach, in addition to the effectiveness of sanctions against Russia's economy. Yellen said the "extraordinary measures" taken by the Treasury Department to delay breaching the debt ceiling will help pay the government's bills until at least early June. She stated that it would be "inconceivable" for the US to default on its obligations and that the only solution is for Congress to "meet its responsibility" and raise the debt ceiling.
Yellen Addresses Effectiveness of Sanctions Against Russia
Addressing the Russian economy, which has stayed strong under sanctions from the US and other Western countries, Yellen expects it to grow weaker as it loses foreign investment and runs through its reserves. However, recent US intelligence has shown that China is considering increasing its support of the Russian economy and war efforts, including supplying drones and ammunition. Yellen stated that such a move would bring "severe" consequences and that the US would not tolerate systematic violations of the sanctions in place.