Us Treasury Secretary Yellen said on Thursday that she still expects inflation to fall to nearly 2 per cent by the end of 2022.

"I expect inflation to remain above 2% for most of this year-12 months of change," Yellen said. But if we succeed in bringing the epidemic under control, I expect inflation to fall during the year and is expected to return to normal levels of about 2 per cent by the end of the year. "

Yellen said inflation is a "shared responsibility" of the U.S. government and the Federal Reserve, and she expressed confidence that the Fed will take appropriate action.

Ms Yellen acknowledged that the US economy was boosted by fiscal stimulus in 2021, but that stimulus was now weakening, but she said strong household balance sheets should keep demand healthy.

"families are in good financial shape-in many ways, they are better off after the crisis than they were before the pandemic," Yellen said. With accumulated savings as a buffer, I think it will continue to support the economy in the coming years, even if financial support is reduced. "