The US Treasury Secretary Janet Yellen warned that prices could continue rising for several months, though she expects the high inflation to cool down over time. EUR USD slips -0.08%, DJI gains 0.074%
- In a CNBC interview, the Secretary warned that inflation could cause challenges for lower-income families seeking to purchase homes when the value of real estate is surging.
- The consumer price index rose by 5.4% in June, the fastest pace in close to 13 years. Excluding food and energy prices, the index rose by 4.5%, the fastest increase in close to 30 years.
- The housing prices in largest cities across the United jumped close to 15% as measured by S&P CoreLogic Case-Shiller.
- The inflationary pressures raises concerns over potential stalling of aggressive economic recovery with housing rising prices increasing features of a bubble.
- Powell acknowledged the Federal Reserve was not happy with the prevailing inflation rate, but he expects economic conditions to return to pre-pandemic levels.