bingo party

Janet Yellen, US Treasury Secretary, saidTiger'sRichesRetreatAlthough the shortage of housing supply has pushed inflation back to a standstillTiger'sRichesRetreatBut she still thinks the underlying price pressure is receding.

"in my view, the fundamentals are that inflation expectations-well controlled and the labour market-are strong but not an important source of inflationary pressures," Ms Yellen said in an interview in Sedona, Arizona on Friday.

Yellen pointed out that data released on Friday showed that the average hourly wage increased by 0% in April compared with the previous month.Tiger'sRichesRetreat.2%.

U.S. Treasury Secretary Yellen is in Washington on April 19, 2024.

Ms. Yellen has been saying for months that housing costs will fall, which will help the so-called lowering of inflation to the last kilometer of the Fed's 2% target. The basic price pressure index concerned by the central bank has been since the beginning of 2022.Tiger'sRichesRetreatThe peak of .6% fell to 2.8%, but progress has stalled recently, leading Fed officials to dampen expectations of when to start cutting interest rates.

Ms Yellen acknowledged that housing inflation had so far progressed more slowly than expected, mainly because of supply problems.

"Housing is a real problem in the United States because of a serious shortage of affordable housing, in part because of high interest rates," she said. "this is one of the most sensitive areas, so new housing construction has not reached the level needed to really ease housing prices."

But she added that housing costs were "highly likely" to fall, based on her interpretation of rental price data for new apartments and single-family homes.

"although the lag is a little longer than I expected, I believe the rate of rise in housing prices will slow down, in line with the new rental market," she said.