US Federal Central Bank chair Janet L. Yellen said “it’s not possible” to keep up with inflation as the US economy is experiencing a “significant, sustained, ongoing” economic slowdown.
Ms Yellen made the remarks at the annual meeting of the National Association of Realtors, an influential industry trade group, as the Federal Reserve continued to try to contain inflationary pressures and slow economic growth.
“We have a very, very difficult and challenging economic environment,” Ms Yank said.
“It is not possible to do this.”
She added that she has been “quite surprised” by the severity of the current economic slowdown, which has been attributed to a variety of factors, including the US decision to keep its interest rates near zero.
“But it’s not a new problem,” Ms Rydell said.
Ms Rynell, who joined the Fed as chief executive in March, said the Fed had been able to manage inflation, even with a 0.25% rate hike in December, and is trying to do so again.
But she also warned that the pace of growth in the economy has slowed.
“As the economy continues to struggle, it is likely that the rate at which inflation moves will slow,” Ms Ryntz said.
Federal Reserve chief Janet Yellner speaks to members of the media during the annual National Association’s Annual Meeting of Realty Investors in Washington, DC, November 13, 2017.
“While we expect the economy to grow in 2017, we will not be able to sustain sustained strong economic growth.”
Mr Yellen has repeatedly said the Federal Government has the right to increase interest rates in an effort to help the economy.
But inflation remains high and she has said that her aim is to reduce the size of the economy in order to help it.
The Federal Reserve has been under increasing pressure to slow inflation and reduce its size.
On Tuesday, the Federal Open Market Committee (FOMC) said that it will raise its benchmark interest rate for the first time since June 30.
It is the first increase in five months.
The rate at the end of 2017 was 0.75%.
The FOMC also cut its forecast for future rate hikes, down to a 2.25 per cent target in 2020.
In 2017, the US has been hit by a severe drop in oil prices that has forced some companies to lay off workers, which in turn has hurt consumer spending.
On Monday, the Consumer Price Index fell 0.5 per cent.
Economists are also forecasting the US will see its unemployment rate rise to 7.9 per cent in 2021, which would be its highest since March 2015.