STORY: U.S. Treasury Secretary Janet Yellen was in the hot seat Tuesday.
In opening remarks to the Senate Finance Committee, Yellen said the U.S. faces "unacceptable levels of inflation," but said much of it was caused by residual snarls in the global supply chain, and the Russian invasion of Ukraine...
Yellen has come under fire from Republicans after admitting she was wrong last year in forecasting that inflation would be transitory and quickly subside.
Here's Republican John Thune of South Dakota:
"Do you still view inflation, which remains near a 40-year high, as transitory, or do you expect an extended period of raised inflation?"
YELLEN: "Well, when I said that inflation would be transitory, what I was not anticipating was a scenario in which we would end up contending with multiple variants of COVID that would be scrambling our economy and global supply chains, and I was not envisioning impacts on food and energy prices we've seen from Russia's invasion of Ukraine. [FLASH] So, I do expect inflation to remain high, although I very much hope it will be coming down now."
Republicans have blamed the Biden administration's policies, particularly the $1.9 trillion American Rescue Plan passed in 2021, for fueling the fastest inflation in almost 40 years.
THUNE: "And do you think that it is at all attributable, to the overheated economy that was accelerated by last year's $1.9 trillion partisan spending bill?"
YELLEN: "Look, when President Biden took office, the United States faced a really horrendous problem in that it was projected that unemployment would stay extremely high for many years."
Yellen said the A-R-P fueled a robust recovery, and argued that the U.S. economy was now moving from recovery to stable growth and was in a good position to tamp down rising prices.
She also urged lawmakers to act on the White House's proposals for clean energy and prescription drugs, to bring down costs for consumers.