U.S. Treasury "Slightly impacted economic recovery spending inflation during COVID-19"

U.S. Treasury Secretary Janet Yeran, who will soon step down, said large government spending to help the economy recover during COVID-19 may have had a slight impact on inflation.

In an interview with CNBC, an economic channel, Yellen acknowledged that the $1.9 trillion aid legislation pushed by the Biden administration during the pandemic was essential, but that it had affected inflation.

This is a partial admission of the link between deepening inflation and pandemic stimulus spending, which is considered an important factor in Trump's presidential victory.

Yellen, however, said the bigger cause of inflation was the supply chain crisis caused by the pandemic, explaining that the resulting shortage of critical commodities is starting to push prices significantly higher.

However, he did not immediately respond to the question of whether he regretted spending for large-scale economic recovery.

Yellen stressed that at the time of the Biden administration's inauguration in January 2021, COVID-19 had worsened out of control, resulting in a series of deaths and threatening people's livelihoods due to rising unemployment.