[Yellen: The Reasons for a Near-Term U.S. Rate Cut Have Essentially Disappeared, Inflation and Debt Risks Draw Attention] BlockBeats News, June 12 — Former U.S. Treasury Secretary and former Federal Reserve Chair Janet Yellen stated at the 2026 Amundi Asset Management Global Investment Forum held in Paris that the reasons for a near-term U.S. rate cut have "essentially disappeared." Current inflation and macroeconomic uncertainties have significantly constrained the space for monetary policy. Yellen pointed out that the U.S. economy is simultaneously facing three supply-side shocks: price pressures from tariffs, energy disruptions caused by the Middle East situation, and rising electricity costs driven by artificial intelligence investments. These factors combined are expected to keep inflation above the Federal Reserve's target for some time. She also warned that the market is underestimating the risks associated with the U.S. federal government's debt levels. The combination of debt burdens and rising interest rates is increasing fiscal vulnerability. She stated that the U.S. fiscal policy path is "unsustainable," with interest expenses now exceeding defense spending, and the long-term Treasury market may face a risk reassessment. In terms of growth, Yellen believes the labor market remains resilient, but changes in inflation expectations are the key variable for monetary policy. Although the likelihood of a rate hike in the short term is low, under the current environment, "the reasons for a near-term rate cut have disappeared," and the market is readjusting its expectations for the interest rate path. [Original Link]