Americans can expect another year of 'uncomfortably high' inflation, according to Treasury Secretary Janet Yellen.

• On Thursday, Treasury Secretary Janet Yellen stated that Americans can expect another year of "uncomfortably high" inflation.
• According to Yellen, the increase in gas prices that we have observed is highly significant, and I predict that the effects of Putin's war on Ukraine will become more evident in the upcoming month, impacting U.S. inflation.
• Hours after the Labor Department announced that consumer prices increased by 7.9% in February, the fastest rate since 1982, the Treasury secretary made his comments.

Janet Yellen, the Treasury Secretary, stated on Thursday that Americans can expect another year of "very uncomfortably high" inflation due to Russia's invasion of Ukraine, which contradicts her earlier prediction that inflation would moderate in the near future.

According to Yellen, there is a significant amount of uncertainty connected to the events happening in Russia and Ukraine.

I believe that it is intensifying inflation, but I am hesitant to make a precise prediction about the second half of the year. It is likely that we will experience another year with persistently high 12-month inflation rates.

The Labor Department published its latest gauge on how fast prices are climbing for American consumers, showing that consumer prices rose 7.9% in the 12 months ending in February, the hottest pace of inflation since 1982. The Treasury secretary then commented on the report just hours later.

Inflation is expected to moderate by the end of 2022, according to Yellen, as supply chain issues are resolved and consumer demand for goods is met.

Yellen stated that Russia's attack on Ukraine has increased uncertainty and raised the prices of various commodities, including crude oil and.

The price of West Texas oil for April delivery reached nearly $130 a barrel earlier this week due to the Kremlin's intensified assault on Kyiv, but it has since retreated somewhat and was last trading around $105 a barrel on Thursday.

The price of oil has increased by about $30 per barrel since three months ago.

According to Yellen, the increase in gas prices that we have observed is highly significant, and I predict that the effects of Putin's war on Ukraine will become more evident in the upcoming month, impacting U.S. inflation.

Russia, aside from exporting oil, also produces wheat alongside Ukraine. This has led to an increase in food prices, which can have a severe impact on emerging market countries.

The Biden administration's economic sanctions against Moscow have been led by the Treasury Department, which has restricted the country's access to U.S. dollars and limited its access to a substantial portion of the global banking system.

Yellen stated that the numerous penalties against Russia have been overwhelming and she is consulting with her global counterparts to further intensify sanctions if necessary.

"The economic impact of sanctions on Russia has been devastating, as we have almost completely disconnected them from the global financial system," Yellen stated.

The economic consequences of the export controls we have implemented will have a devastating effect on Russia's ability to run a modern economy and advance in defense and other areas, according to her.