share this article!

Staff of Reuters Read for 2 minutes FILE PHOTO: U.S. Treasury Secretary Janet Yellen answers questions during a Senate Appropriations Subcommittee hearing on Capitol Hill in Washington, DC, U.S., on June 23, 2021, to assess the Treasury Department’s FY22 budget request. Pool/Greg Nash courtesy of REUTERS/File Photo (Reuters) – WASHINGTON (Reuters) – On Thursday, US Treasury Secretary Janet Yellen expressed concern about housing affordability, saying she expected several more months of high inflation readings, but that they were only temporary, and that the Federal Reserve was doing a fine job under Chairman Jerome Powell. In an interview with CNBC, Yellen said she was unsure whether Amazon.com would reach the profitability requirement for inclusion in a new global reallocation of taxing powers that 132 countries had agreed to. The OECD’s “Pillar 1” tax agreement permits nations where large, lucrative multinational corporations sell goods and services to tax a portion of their profits. Companies like Amazon, Google, and Facebook would be exempt from national digital services taxes under the agreement. According to Yellen, the rise in home prices in the United States under low interest rates and robust demand did not entail the same hazards as the housing catastrophe of 2008 because lending was done to creditworthy borrowers. “It’s a totally distinct issue,” Yellen said, “but I’m concerned about affordability and the pressures that increasing housing prices will create for first-time homeowners.” She also stated that the Biden administration’s efforts to increase the supply of affordable housing will be considered by Congress. She sees the recent spike in inflation numbers as a blip on the radar. “I believe we will experience several more months of significant inflation, so this is not a one-month occurrence. However, I believe that inflation will return to normal in the medium future. But we must, of course, keep a close eye on it.” She said the following regarding the Federal Reserve’s performance under Powell: “I have a great deal of respect for the Federal Reserve, and it’s critical that they make their own decisions about what’s appropriate. I believe the Fed has done an excellent job.” David Lawder and Diane Bartz contributed reporting, and Leslie Adler and Alistair Bell edited the piece./nRead More

share this article!