Yellen expresses concern about house prices but inflation is likely to subside

WASHINGTON, July 15 (Reuters) – U.S. Treasury Secretary Janet Yellen on Thursday expressed concerns about housing affordability and said she expected several months of high inflation figures, but that it remained transitional, adding that the Federal Reserve was doing a good job under Jerome’s presidency. Powell.

Yellen, in an interview with CNBC, said she was also not certain that Amazon.com (AMZN.O) would break even for inclusion in a new global taxing rights reassignment agreed to. by 132 countries.

The OECD “pillar 1” tax deal allows countries where large, highly profitable multinationals sell goods and services to tax a portion of their profits. The arrangement would replace national taxes on digital services on companies such as Amazon, Google and Facebook.

Yellen said rising US house prices amid low interest rates and strong demand did not carry the same risks associated with the 2008 housing crash as loans to creditworthy borrowers.

“It’s a very different phenomenon, but I’m concerned about the affordability and the pressures that rising house prices will create for families who buy first-time homes,” Yellen said.

She added that Congress would review the Biden administration’s plans to increase the supply of affordable housing.

Regarding the high inflation data, she said she sees it as transitory.

“I think we’ll have several more months of rapid inflation, so I’m not saying it’s a one-month phenomenon. But I think in the medium term we’ll see inflation come back to a normal level. But of course we have to keep a close eye on it. “

Regarding the performance of the Federal Reserve under Powell, she said: “I have a lot of respect for the Federal Reserve and it is important for them to make independent judgments on what is appropriate. I think the Fed has done something wrong. good work. “

Reporting by David Lawder and Diane Bartz; Editing by Leslie Adler and Alistair Bell

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