United States Treasury Secretary Janet Yellen stated on Wednesday that economic relief measures during the Biden administration may have contributed modestly to the nation’s inflation rise.
In an interview on CNBC, the outgoing secretary acknowledged a possible link between pandemic stimulus spending and inflation, which she said increased "a little bit." However, she emphasized that the primary driver of inflation was the impact of COVID-19 itself.
Yellen also noted that the labor market remains in "good shape" despite showing signs of cooling. She warned, however, that repealing Internal Revenue Service funding could lead to an $800 billion increase in the federal deficit.
