U.S. Treasury Secretary Janet Yellen said on Wednesday that the current annual inflation rate of 8% is "unacceptable" for the United States and a 2% inflation target for the Federal Reserve is a "appropriate target" for the Federal Reserve.

Yellen, testifying before the U.S. House of Representatives Ways and Means Committee, also said that it was important to continue to reduce deficits in the current inflationary environment.