Things Won't Be So Expensive Next Year, Janet Yellen says — and Americans will be able to 'feel good about their finances and their personal economic situation'

Ayelet Sheffey   Mon, December 12, 2022

The US Treasury secretary told "60 Minutes" she's hopeful prices would greatly decrease next year.

Janet Yellen said that while there's risk of a recession, it's not needed to bring inflation down.

Her comments came amid expectations of another interest-rate hike from the Fed this week.

The nation's top Treasury official sees things looking up for Americans in the new year.

On Sunday, US Treasury Secretary Janet Yellen appeared on CBS' "60 Minutes" to chat about where she sees the economy headed, including the outlook on inflation and the labor market. While recent economic data show signs that the economy is headed in the right direction — the country added 263,000 payrolls in November — prices remain high, and the Federal Reserve has chosen to aggressively fight inflation by hiking interest rates, which some lawmakers worry could trigger a recession.

Yellen said that while there is a risk of a recession, she's hopeful that Americans will not feel a strain on their wallets for much longer.

"I believe inflation will be lower," Yellen said. "I am very hopeful that the labor market will remain quite healthy so that people can feel good about their finances and their personal economic situation."

"There's a risk of a recession," she added. "But it certainly isn't, in my view, something that is necessary to bring inflation down."

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Yellen noted that gas prices and shipping costs have come down while the labor market is remaining strong, which is why she thinks that by the end of next year, there will be a "substantial reduction in inflation" as long as there isn't an "unanticipated shock."

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