MNI BRIEF: Treasury's Yellen: Inflation Moving To Fed's Target

U.S. inflation remains higher than preferred but is set to keep heading lower over time to the Federal Reserve's 2% target, Treasury Secretary Janet Yellen said on Thursday.

"Inflation is down significantly from its peak, trending towards the Federal Reserve’s target," Yellen said in prepared remarks to a G20 press conference in Rio de Janeiro. "New data from just this morning shows growth of 2.8% in the second quarter of this year, affirming the path we’re on to steady growth and declining inflation," while "unemployment rate remains historically low." (See: MNI INTERVIEW: Fed To Open Door To Sept Cut Next Week - English)

Yellen -- a former Fed chair -- also promised to keep pressing China to address its macroeconomic model, which is channeling too much savings and too many subsidies into manufacturing, contributing to industrial overcapacity.