US Treasury Secretary Janet Yellen said she believes inflation will fall to 2 percent by the end of the year.

In an interview with CNBC, Yellen stated that annual inflation will stay above the 2 percent target for most of the year, but if the pandemic is brought under control, inflation will start to decline towards 2 percent.

Yellen said that reducing inflation is a joint responsibility of the Fed and the government, and that the Central Bank is taking the right steps.

She also stated that the decrease in the unemployment rate is also a ‘success story’. ”Such a decrease in unemployment in one year should be seen as an important success story in American history.”

Inflation in the USA reached its highest level in 40 years with 7 percent in December, causing tightening pressure on the Fed. Fed Chairman Powell and other Fed officials are giving signs of tightening in the near future. A 25 basis point rate hike is priced in the markets in March.