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MNI BRIEF: Yellen Says Inflation Last Mile Won't Be Tougher


U.S. Treasury Secretary Janet Yellen said Tuesday she doesn't see any evidence inflation is becoming stuck or that the `last mile' to the Federal Reserve's 2% goal will prove much more difficult to cover.

"I personally don't see any good reason to think that the last mile is going to be especially difficult," she said in Q&A at a WSJ event. "We have an economy that's roughly operating at full employment and it can continue to do so." (See: MNI FED WATCH: On Hold Again As Rate Cut Speculation Builds)

Yellen suggested the central bank will need to cut interest rates at some point. "As inflation comes down, other things equal, real interest rates tend to rise which causes a tightening of monetary policy. That's one factor that could weigh in the decision that the Fed makes about the path of interest rates."

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

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