Mortgage rates rise, US Treasury Secretary fears drastic living cost changes.

Summary：The U.S. Treasury Secretary is concerned that significant wage increases could lead to sharp rises in prices and the cost of living.

U.S. Treasury Secretary Janet Yellen expressed concern over the significant increase in the cost of living, the Financial Times reported on Friday.

In an interview published on Friday, Yellen stated that while wages have risen significantly, some prices that matter to people have also increased sharply, particularly noticeable over a short period.

"People notice this when they buy food," she added, "They also feel it when renting. With rising mortgage rates, it has become more difficult for young people to enter the housing market."

In the 12 months ending in April, the U.S. Consumer Price Index (CPI) rose by 3.4%, compared with a 3.5% increase in March. Earlier this month, the U.S. central bank kept its benchmark overnight interest rate in the current range of 5.25% to 5.50%, unchanged since July.

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Written byTraderKnows

Created date:2024-05-24 05:09

Last Updated:2024-05-24 05:22

Independent Analysis: Manually researched and fact-checked by the TraderKnows Compliance Team, based on public regulatory records.

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Inflation

Inflation refers to the phenomenon where the purchasing power of a country's (or region's) currency decreases, leading to a general rise in the prices of goods and services. It is reflected in the fact that, over a certain period, the same amount of money can only buy fewer goods and services.