U.S. Treasury Secretary Janet Yellen said Monday that she does not see the U.S. economy spiraling out of control or “overheating” as analysts have said. While inflation is increasing, the Secretary believes its rise is related to the COVID-19 pandemic. She said, “I would not say the U.S. economy is currently overheating, we’re still 5 million jobs below where we were pre-pandemic and labor force participation has declined and the reasons relate to the pandemic. Yellen also said that she believes labor issues and supply chain problems will improve as the pandemic becomes less of a concern. This opinion, however, stands in stark contrast to what investors believe. Referring to our earlier report, inflation could remain at 3%, and the Fed might need to raise interest rates twice next year. Yellen concluded by saying, “I believe as we get beyond the pandemic, that these pressures release and in that sense, I believe inflation is transitory, and we don’t have an economy that is in a longer-run sense overheating.”