Biden’s Treasury Secretary Janet Yellen is admitting she was wrong about inflation being temporary or transitory.
It’s amazing to hear a government official admit they were wrong, but that doesn’t change the harsh reality for Americans who are struggling with higher prices on everything.
Also, millions of Americans could have told her she was wrong months ago.
CBS News reports:
Yellen admits she was “wrong” about inflation in 2021
Treasury Secretary Janet Yellen told CNN on Tuesday that she was wrong when she said last year that inflation only posed a small risk and wasn’t likely to be a problem.
Yellen made the comments to Wolf Blitzer, after the host replayed clips of Yellen calling the risk of inflation “small” and “manageable,” and said she didn’t “anticipate that inflation is going to be a problem.” Federal officials called inflation transitory in the past, but since then, inflation has reached levels not seen in 40 years, with the Federal Reserve and policymakers struggling to bring it down.
“Well, look, I think I was wrong then about the path that inflation would take,” Yellen said Tuesday. “As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices, and supply bottlenecks that have affected our economy badly that I didn’t at the time didn’t fully understand. But we recognize that now.”
“The Federal Reserve is taking the steps that it needs to take,” she added. “It’s up to them to decide what to do. And for our part, President Biden is focused on supplementing what the Fed does with actions we can take to lower the costs that Americans face for important expenditures they have in their budgets. Prescription drugs is one example. Health care costs, another example. Utility bills,” she added.
Here’s the video:
.@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
It doesn’t inspire much confidence to hear the treasury secretary say that she didn’t fully understand this.