U.S. Treasury Secretary Janet Yellen acknowledged in a CNBC interview that the Biden administration’s pandemic stimulus spending may have contributed “a little bit” to inflation. While Yellen emphasized that supply chain disruptions were the primary drivers of rising prices, she conceded that stimulus measures had a role in the economic challenges.

“It may have contributed a little bit to the inflation, but by and large, inflation was a supply side phenomenon,” Yellen said, referring to global shortages, including semiconductors, which hindered production.

Yellen defended the relief spending, asserting it was necessary to prevent economic scarring, such as long-term unemployment and business closures. Despite efforts to stabilize the economy, she admitted that inflationary pressures have not significantly eased.

On the broader economy, Yellen noted that consumer spending and investment remain solid, even as the labor market cools and interest rates stay elevated. She also highlighted recent economic uncertainties tied to policy changes and ongoing geopolitical issues.

In a separate concern, Yellen addressed the recent cyberattack on Treasury workstations by Chinese state-sponsored actors, labeling it a “tremendous concern.” She stated that Treasury officials had raised the matter with Chinese Vice Premier He Lifeng and pledged continued actions against cyber threats.

Yellen also declined to comment in detail on President Biden’s blocking of Nippon Steel’s acquisition of U.S. Steel, which has sparked litigation over the government’s handling of the deal. She confirmed that the Committee on Foreign Investment in the United States (CFIUS) provided a thorough analysis before Biden’s decision.

As Yellen prepares to leave office, her remarks mark a rare acknowledgment of the trade-offs associated with pandemic-era spending and the challenges of managing inflation in a post-pandemic economy.