U.S. Markets

U.S Treasury's Yellen downplays inflation, rate hike concerns

FILE PHOTO: U.S. Treasury Secretary Janet Yellen, the former Federal Reserve chair, holds a news conference in Washington, U.S. December 13, 2017. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen said on Tuesday that she does not anticipate that inflation will be a problem for the U.S. economy, as price increases during the recovery should be transitory.

Yellen, speaking to a Wall Street Journal event, clarified earlier remarks that interest rates may need to rise modestly to prevent the economy from overheating. “It’s not something I’m predicting or recommending,” she said.

Reporting by David Lawder; Editing by Leslie Adler