By Ovunc Kutlu
ISTANBUL (AA) - Inflation in the US has cooled sooner and more quickly compared to other large and advanced economies, Treasury Secretary Janet Yellen said Thursday.
"Inflation has come down significantly," Yellen said during her speech at the Economic Club of Chicago in the state of Illinois. "Consumer sentiment has increased by 29% since November, the biggest two month increase since 1991. It’s now at its highest level since 2021."
She noted that American economy expanded 3.1% in 2023, while the labor market is healthy with the unemployment rate remaining near historic lows.
Yellen said the President Joe Biden administration helped to ease the supply chain bottlenecks that were contributing to inflation, while it is working to bring energy-related costs down and make tax credits more available to households.
"Companies have announced over $600 billion in manufacturing and clean energy investments since the start of the Administration. These investments will fuel our economic growth and increase our economic security," she told.
The Treasury head, however, added that prices of certain goods still remain too high for middle-class Americans despite slowing inflation.
Annual consumer inflation in the US came in at 3.4% in December, up from a 3.1% gain in November, which is a significant slowdown from the 9.1% gain recorded in summer of 2022.
The Federal Reserve said last week price increases in the US are slowing down slightly, but annual inflation still manages to remain high.