Treasury Secretary Janet Yellen has expressed remorse for her choice of words when discussing inflation.

During a recent interview, Yellen was asked, “In 2021, You did say inflation was transitory, do you regret saying that now?”

“I do regret saying it was transitory,” she replied.

Yellen added, “[Inflation] has come down. But I think transitory means a few weeks or months to most people.”


Yellen’s interview coincides with the persistent high levels of inflation during President Joe Biden’s tenure. In February, inflation exceeded expectations by rising at an annual rate of 3.2%, surpassing the anticipated 3.1%.

The continuous surge in prices has prompted some analysts to question whether the Federal Reserve will reduce interest rates, considering they currently exceed the target rate of 2%. However, there are others who argue that this will not result in a delay in rate cuts.

During the earlier stages of Biden’s presidency, Yellen referred to inflation as “transitory” and predicted a decline once the supply chain disruptions caused by the COVID-19 pandemic eased. Although inflation has decreased from its peak of 9.1% in 2022, it has not fallen below 3% since March 2021.