Janet Yellen Signals US Inflation Will Fall Soon. United States (US) Treasury Secretary Janet Yellen estimates that housing rental costs, which are the biggest contributor to inflation in the country, will fall in 2024.
Meanwhile, this estimate also coincides with the signing of the new rental agreement. He also said that it would take some time for changes in rental levels to be included in the consumer price index (CPI), but it was not expected to happen this year.
For your information, the US CPI released on Tuesday (12/3) increased strongly in February 2024, beating estimates and showing stiff inflation. Inflation last month increased 0.4% in line with estimates.
Then, the annual increase reached 3.2%, slightly higher than the estimate of 3.1%. Core inflation figures also exceeded estimates. The market now sees little chance for the US central bank, namely the Federal Reserve (The Fed) to lower interest rates before the summer.
Then, according to LSEG’s interest rate probability app, expectations for a rate cut in June 2024 fell slightly to around 67% versus 71% at the start of the week.
The Fed is also expected to keep interest rates on hold at its meeting next week. Not only that, Yellen also said that it was impossible for market interest rates to return to levels before the Covid-19 pandemic, which triggered inflation and higher yields.
Janet Yellen Signals US Inflation Will Fall Soon. There is also a debate among economists, namely whether long-term interest rates will return to pre-pandemic levels or remain higher.