Top Biden Official Makes JAW-DROPPING Confession About Economy
(RepublicanReport.org) – President Joe Biden’s administration heavily downplayed the nation’s inflation woes in 2021. Multiple officials, including the commander-in-chief, believed the issue was a temporary result of supply chain problems and COVID-19. Treasury Secretary Janet Yellen was among the officials who didn’t think the soaring prices would become a long-term issue.
A year and a half into the Biden administration, a very different picture has come into view. Yellen is now admitting as much.
Underestimated the Problem
On May 31, Yellen appeared on CNN’s Wolf Blitzer’s show to discuss the economy. The journalist asked about remarks she made in 2021 downplaying inflation. For example, both the secretary and Fed Chairman Jerome Powell described the rising prices as “transitory.” They believed the problem would subside when the increased demand for goods and supply chain issues returned to normal. Halfway through 2022, all of those issues are still around.
Yellen told Blitzer, “I think I was wrong then about the path inflation would take.” She went on to say there were “unanticipated and large shocks” that have caused the price of food and energy to increase. She said at the time, she did not fully understand how those issues would impact the economy.
.@SecYellen on inflation being transitory: "I was wrong then about the path that inflation would take. As I mentioned, there have been unanticipated and large shocks to the economy […] that I, at the time, didn't fully understand." https://t.co/AlrXn4kT0r pic.twitter.com/9tqxo0iA3B
— The Hill (@thehill) June 1, 2022
In a separate interview, Yellen spoke to CNBC’s Becky Quick about the administration’s plans to lower inflation. She said reducing the budget deficit, efforts to lower drug prices, and increasing oil production can help reduce prices. The secretary went on to say Biden has said he wants to do everything possible to lower them.
What’s Biden Saying
Although Yellen is convinced the president is working on solutions, Biden has admitted there isn’t much he can do. The remarks came during an emergency meeting about baby formula on June 1.
Earlier in the week, the president met with Powell to discuss the persistent inflation problem. Biden said he wasn’t going to pressure the Fed to raise interest rates. Instead, he’s letting the central bank take the lead. The Federal Reserve is raising interest rates throughout the summer in an attempt to slow the economy to bring prices down.
In an op-ed for the Wall Street Journal, Biden spoke directly to the American people, saying he knows they are anxious about the economy, but assured them the US is facing the inflation issues from “a position of strength.” He discussed the decline in unemployment, Americans receiving more money at their jobs, and other successes. And while he said he won’t meddle with the Fed, he said he thinks the “right policies” will allow the country to “transition from recovery to stable, steady growth.”
Biden laid out a path Congress can take to do that over the long-term, including passing energy tax credits and fixing the supply chain issues, adopting his Housing Supply Action Plan and reducing the prices of prescription drugs.
With the Senate split evenly, the president doesn’t currently have enough votes to pass any of those policies. So, what’s next?
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