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Yellen, in an interview with CNBC, said she also was not certain
whether Amazon.com would meet the profitability threshold for
inclusion in a new global reallocation of taxing rights agreed
by 132 countries.
The OECD "Pillar 1" tax deal allows countries where large,
highly profitable multinationals sell goods and services to tax
a portion of their profits. The arrangement would replace
national digital services taxes on companies such as Amazon,
Google and Facebook.
Yellen said the run-up in U.S. housing prices amid low interest
rates and strong demand did not carry the same risks associated
with the housing crash of 2008 as lending was being done to
creditworthy borrowers.
"It's a very different phenomenon but I do worry about
affordability and the pressures, higher housing prices will
create for families that are first time homebuyers," Yellen
said.
She added that Congress will be considering plans by the Biden
administration to boost the supply of affordable housing.
Regarding elevated inflation data, she said she views it as
transitory.
"I think we will have several more months of rapid inflation so
I'm not saying that this is a one-month phenomenon. But I think
over the medium term, we'll see inflation decline back to a
normal level. But of course we have to keep a careful eye on
it."
Regarding the performance of the Federal Reserve under Powell,
she said: "I have a lot of respect for the Federal Reserve and
it's important for them to make independent judgments about
what's appropriate. I think that the Fed has done a good job."
(Reporting by David Lawder and Diane Bartz; Editing by Leslie
Adler and Alistair Bell)
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