Treasury Secretary Janet Yellen says U.S. faces ‘unacceptable levels’ of inflation and calls on Congress to act as Republicans grill her on admitting she was ‘wrong’ about predicting the highest price hike in 40 years
‘I do expect inflation to remain high, although I very much hope that it will be coming down now,’ she said
The secretary offered slim hope that inflation would regulate any time soon
World Bank slashes global growth forecast nearly a third citing the risk of 1970s-style ‘stagflation’ and predicts US economy will grow at less than half the pace it did last year
US growth was seen dropping to 2.5% in 2022, down from 5.7% in 2021
Stagflation, or high inflation with slow growth, was last seen in the 1970s
Interest rate hikes to control inflation in the late 70s triggered a global recession