Yellen: U.S. inflation will be much lower by the end of 2023

On Sunday, U.S. Treasury Secretary Janet Yellen predicted a significant decline in U.S. inflation in 2023, assuming the absence of unexpected factors.

The former Federal Reserve Chair believes that a recession is possible, but definitely not necessary to reduce inflation.

CBS got comments from Yellen about decreasing inflation and a significant slowdown in economic growth. She hopes for a continued healthy labor market. After experiencing high prices in the 1970s, the U.S. government is trying to keep inflation under control.

Yellen commented on the situation a few days ahead of expectations for a slowdown in the Fed aggressive rate increases it has been making this year. After four increases by 75 basis points this year, a small interest rate rise by half of a percent to a range of 4.25-4.5% is expected. This is according to Federal Reserve Chair Jerome Powell.