(CNBC) US Treasury, Janet Yellen, has warned of rising inflation in several months to come, although she expects the situation to ease in the medium term.
Yellen raised concerns that the rising housing prices will disrupt economic growth amid fears of a bubble. The prices will also weigh heavily on new homeowners.
Yellen’s statement comes as both houses question Jerome Powell on the effect of Congress expenditure and Fed policies have on runaway inflation.
The US consumer price index rose 5.4% in June, the highest price jump in about 13 years, raising concerns of sustained inflation.
Commodity prices received by producers went up by 7.3%, a record dating back to 2010.
The 10-year Treasury bond fell below 1.3% after rising 1.75% between October 2020 and March 2021, despite inflation fears.
SPY is up +1.49% on pre-market, DXY is up +0.21%.
