According to US Treasury Secretary Janet Yellen, inflation remains high but is assuring markets that data continues to point towards a recovery on US price growth and economic activity.

Key highlights

Yellen affirms it is "highly likely" that shelter inflation will fall in the next year.

Still-high inflation largely due to fading supply shocks.

People are generally better off despite price growth, but still have more work to do.

Higher steel tariffs on China seem appropriate.

The US needs to take "significant steps" to reduce budget deficit.

Yellen remains concerned about where the US is headed with deficit.