Daily Management Review

US Labour Market Is Similar To Pre-Pandemic Conditions, According To Yellen


US Labour Market Is Similar To Pre-Pandemic Conditions, According To Yellen
On Thursday, U.S. Treasury Secretary Janet Yellen stated that slower pay growth is not a danger to drive up inflation and that the current state of employment in the country is beginning to resemble the labour market before the COVID-19 epidemic.
The job market has slightly cooled off and become more typical. There are fewer positions available now. Yellen stated in an interview that there has been a surge in labour force participation.
"And so the labor market now is resembling what it looked like pre-pandemic. Wages are increasing but at a slower rate. And so that doesn't really look like it's a threat to inflation," Yellen said.
Yellen stated that a significant portion of the residual inflation that needs to decrease is in housing markets, where recent declines in high rents are slower to take effect as leases roll over. Yellen is in New York to advocate for President Joe Biden's economic agenda in a speech to business and Wall Street leaders.
Despite increases in income, she claimed that Americans' perceptions of the economy are being impacted by the rising prices of housing, education, health care, and other essentials.
Biden "will continue to address the high cost of living whether it's in allowing Medicare to negotiate drug prices down, capping the cost of insulin co-pays, doing what he can to bring down the cost of living" Yellen said, adding that even wiht declining inflation. 
In support of her suggestion that the G7 provide a loan to Ukraine that would be repaid by the proceeds from around $300 billion in frozen Russian assets, Yellen produced an opinion article and opened a new tab in the New York Times on Thursday. This was done while the leaders of the Group of Seven rich democracies were meeting in Italy.
Although she recognised Europe's hesitation to take that action, Yellen stated that the Biden administration believes that seizing the assets is "legal, moral, and economically reasonable."
"What we're looking for is to keep the allies together to find a way to do something jointly in a way that is agreeable to all of the partners who have been supporting Ukraine."
According to her, the loan proposal releases the assets' economic potential and provides Ukraine with the means to counter Russia's invasion.
It's a "meaningful amount, the number that is being discussed is something like $50 billion and this could be repeated," she stated.