Skip to content Skip to Search
Skip navigation

US inflation may see ‘substantial’ reduction in 2023

Woman, Adult, Female REUTERS
Yellen remains hopeful that the labour market will remain healthy

US treasury secretary Janet Yellen on Sunday forecast a substantial reduction in US inflation in 2023, barring an unexpected shock.

“I believe by the end of next year you will see much lower inflation if there’s not … an unanticipated shock,” she told CBS’ “60 Minutes” in an interview released Sunday.

Asked about the likelihood of recession, the former Federal Reserve chair said, “There’s a risk of a recession. But … it certainly isn’t, in my view, something that is necessary to bring inflation down.”

Yellen’s comment came days before the Fed is expected to slow the aggressive pace of interest rate increases it has pursued this year.

Fed chair Jerome Powell has telegraphed a smaller, half-of-a-percentage point increase in the policy rate, to a range of 4.25-4.5 percent, after four 75-basis point hikes this year.

Yellen told CBS that economic growth was slowing substantially, inflation was easing and she remained hopeful that the labour market would remain healthy.

She said she hoped the spike in inflation seen this year would be short-lived, and said the US government had learned “a lotta lessons” about the need to curtail inflation after high prices seen in the 1970s.

Shipping costs had come down and long delivery lags had eased, while gasoline prices at the pump were “way down.”

“I think we’ll see a substantial reduction in inflation in the year ahead,” she said.  

Latest articles

Indian prime minister Narendra Modi (left) completed a visit to the UAE in February to sign deals on trade cooperation

Indian investment in GCC falls despite increased trade

Investment from India into Gulf countries has dropped considerably despite growth in bilateral trade due to the country adopting a more protectionist approach. Trade between India and the group of six GCC countries – Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the UAE – reached almost 16 percent of the country’s total in the last […]

Mohammed El-Kuwaiz, chairman of Saudi Arabia's Capital Market Authority

Saudi investors fined $1m for insider trading

Saudi financial authorities have fined five investors and one company almost SAR5 million ($1.3 million) for insider trading and other capital market law violations, the latest in a series of crackdowns on corruption in the kingdom.  The investors and the company, Erada and Riyada for Development and Commercial Investment, committed crimes including buying shares of […]

Photography, Clothing, Glove

Qatar signs 15-year urea supply pact with US company

Qatar, the world’s second-largest exporter of urea, has signed a long-term urea supply agreement with US-based Koch Fertilizer.  The 15-year agreement, starting in July, will lead to the supply of up to 0.74 million tonnes per annum (MTPA) of urea, state-backed QatarEnergy said in a statement. Locally manufactured urea will be supplied to the agricultural […]

Adnoc's Ruwais LNG project. The company has approved capital expenditure of $150 billion for 2023-2027

Adnoc to reach its 5m bpd oil target before 2027

Abu Dhabi National Oil Company (Adnoc) is likely to reach its 5 million barrel per day (bpd) oil production capacity expansion by the end of next year or early 2026, Bloomberg reported, citing people aware of the operations. The oil company announced in November 2022 that the new target was to be achieved by 2027 […]