WASHINGTON, June 7 (Reuters) - The U.S. economy is strong amid robust consumer spending but some areas are slowing down, U.S. Treasury Secretary Janet Yellen said on Wednesday, adding that she expects continued progress in bringing inflation down over the next two years with a strong labor market.
Yellen said that inflation can subside while maintaining a strong labor market, with unemployment in the 4% range, up slightly from the 3.7% reading in May.
"We've always thought an unemployment rate with four as the first digit is a very strong labor market," Yellen said.
She said the economy has slowed somewhat, easing pressures in the labor market, but "we still have a very healthy labor market, wage gains are significant."
Asked about former Richmond Federal Reserve President Jeffrey Lacker's view that the federal funds rate, at 5.0-5.25% now, will have to rise to 6% to tame inflation, Yellen said that was a decision for the Fed.
Persons:
Janet Yellen, Yellen, We've, Jeffrey Lacker's, David Lawder, Susan Heavey, Doina Chiacu, Chizu Nomiyama, Andrea Ricci
Organizations:
Treasury, CNBC, Federal, Richmond Federal, Securities and Exchange Commission, European Union, Thomson
Locations:
U.S