During an interview with NBC News on Monday broadcast on Monday’s edition of MSNBC’s “The 11th Hour,” Treasury Secretary Janet Yellen said she can’t rule out the possibility of a recession, there is a path to reducing inflation while still having a strong job market, and we’re on the path to doing so, even though “we’ve not seen inflation come down.”
Yellen said that she thinks “there is a path by which inflation can come down to comfortable levels while maintaining a strong job market.”
MSNBC host and NBC News Senior Business Analyst Stephanie Ruhle then asked, “Are we on that path?”
Yellen responded, “So far I would say yes. Although, we’ve not seen inflation come down. But I think we’re on the path to bring it down. The administration has been working with Congress to supplement what the Fed’s doing. So, we’ve had releases of oil from the Strategic Petroleum Reserve, and that’s helped to hold oil prices down. Of course, gas prices are higher, but they’re well off their peak. Meanwhile, the Inflation Reduction Act that was passed will lower prescription drug prices, which is important for so many households, and also hold down healthcare premiums.”
Yellen also stated of a recession, “I can’t rule out the risk of one. But, as I said, I believe there is a path toward bringing inflation down, with — in the context of a strong labor market.”
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