Janet Yellen: 'Unacceptable' inflation is a global problem

Shafaq News / US Treasury Secretary Janet Yellen conceded on Tuesday that inflation is at "unacceptable levels," but she also sought to underscore that this is not a problem exclusive to the United States.

"Putin's war in Ukraine is having impacts on energy and food prices globally," Yellen told lawmakers. "We are not the only country experiencing inflation. You can see that in virtually every developed country around the world."

Speaking during a Senate Finance Committee hearing, Yellen pointed to the Biden administration's record-setting release of oil from the Strategic Petroleum Reserve.

"Energy and gasoline prices, while very high, they would be higher without that," Yellen said.

Still, the Treasury secretary emphasized that the United States is not immune to global energy shocks.

"We are part of global oil markets that are subject to geopolitical influences. Given the global nature of these markets, it's virtually impossible for us to insulate ourselves from shocks like the ones that are occurring in Russia that move global oil prices," Yellen said. She added that it is critical that the United States become "more dependent on the wind and the sun that are not subject to geopolitical influences."

During her prepared remarks, Yellen acknowledged that the United States faces "macroeconomic challenges, including unacceptable levels of inflation."

Yellen called on lawmakers to take action to address high inflation.

"I believe there's a lot that Congress can do to ease the cost burdens that households are experiencing," Yellen said. Specifically, she pointed to investments in lowering prescription drug costs, investing in clean energy, investing in affordable housing and helping families with child care expenses and medical costs.

(CNN)