Former Treasury Secretary Yellen: "Trump Tariffs Will Push US Annual Inflation Rate Above 3%"

JH Kim

Summary

Former US Treasury Secretary Janet Yellen stated that President Trump's tariff policy would raise the US inflation rate to at least 3% or more.
Yellen projected that, due to tariffs, average US household income could fall by about $1,000.
She emphasized that the extent of the damage could be greater depending on how tariffs are implemented.

Former US Treasury Secretary Janet Yellen warned that President Donald Trump's tariff policy could drive prices back up in the US and reduce household income.

Appearing on CNBC's 'Money Movers' on the 12th (local time), Yellen said, "This year's annual inflation rate is expected to rise to at least 3% or more," adding, "This is due to the impact of tariffs."

She emphasized, "It is still uncertain exactly how President Trump's tariffs will be implemented, but one thing is certain—they will affect prices."

Yellen also projected, "Due to tariffs and their knock-on effects, average US household income could decrease by about $1,000." She added, "Depending on how tariffs are implemented, the scale of the damage could be even greater."

Meanwhile, Yellen served as chair of the Fed from 2014 to 2018.