Yellen: I was wrong last year on inflation

Bloomberg headline: Yellen Says ‘I Was Wrong’ Last Year on the Path of US Inflation

* Yellen also says US won’t see same pace of big job gains

* Treasury chief says she didn’t fully understand circumstances

New variants of Covid, lockdowns in China and Russia’s war on Ukraine have all imposed shocks on the economy, the Treasury chief said after attending a meeting at the White House with President Joe Biden and Federal Reserve Chair Jerome Powell to address inflation.

Biden said earlier Tuesday that his role as president is to give the Fed “the space they need to do their job, adding, “I’m not going to interfere with their critically important work.” Yellen said that the Fed is taking the steps it needs to stem inflation.

Public support for Biden on handling the economy has cratered with the surge in the cost of living. Consumer prices in April rose 8.3% from a year before, close to the 40-year high reached in March.