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"Inflation rose by more than most economists, including me,
expected and of course it's our responsibility with the Fed to
address that. And we will," Yellen told CNBC in a live
interview.
"We have been hit by a pandemic that has created economic
challenges that none of us anticipated, and it is our hope and
intention to bring inflation down to levels that are consistent
with the Fed's interpretation of price stability," Yellen said.
The Treasury chief and former Fed chair said that U.S. household
finances were in good shape, with some families better than
before the pandemic, and built-up savings should help sustain
the economy for years to come, even with less fiscal support
going forward.
Meanwhile, she said it was critical for more people to come back
into the labor force, which would help ease supply pressures.
This will require the pandemic to be brought under control. If
that happens, she said she expects inflation pressures to ease
throughout 2022.
Yellen also told CNBC that she views Biden's proposed Build Back
Better social and climate legislation as encouraging more
workforce participation through its child care and early
childhood education provisions.
(Reporting by David Lawder and Andrea Shalal; Editing by Chris
Reese and Cynthia Osterman)
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