“Policy making is about identifying and addressing risks, and the most important risk we have is a staff that is marked by a long period of unemployment,” Yellen told ABC’s “This Week” program.
“It’s a temporary price movement,” he said. “To get high and sustained inflation like we had in the 1970s, I don’t expect it at all. We’ve had very well-anchored inflation expectations and a Federal Reserve that has learned about how to manage inflation. So I don’t “I don’t think it’s a major risk and, if it materializes, we will certainly monitor it, but we have the tools to address it,” he added.
When he pushed the ABC’s George Stephanopoulos on federal debt, Yellen said he has changed his views “slightly” on fiscal sustainability in part because of the global trend toward very low interest rates.
“When I think of the debt burden, I think of it primarily in terms of the interest payments that the government has to pay for those who have that debt. And even though the debt increases substantially, in the relative interest payments so far this year. , the size of the economy has remained quite low, not even higher than in 2007, ”he said.
“But of course we have to make sure that the budget of the economy follows a sustainable path and that’s something we can afford. In the long run, we have to control the deficits to make sure that our situation be sustainable. “