Pack Your Apologies Away, Janet Yellen
Treasury Secretary Janet Yellen revealed to Fox Business News her regret for dubbing post-pandemic inflation as “transitory,” a term that she now concedes may have been prematurely optimistic. Was it a mere miscalculation or an intentional downplay? Let’s delve deeper.
Scrutiny arises as it becomes apparent that Yellen may have been part of a broader political strategy to mitigate concern over rising prices as Democrats sought to advance significant policy changes. The consistency of her message with White House communications casts a shadow on the claim of an innocent oversight. Did Yellen truly err, or was she acting out a pre-written part?
President Biden himself once asserted, “There’s nobody suggesting there’s unchecked inflation on the way — no serious economist.” Former Press Secretary Jen Psaki echoed this sentiment. Yet, standalone voices among Dems and leading economists clearly warned against flooding an already heated economy with trillions. A month before Psaki’s statement, inflation was hitting record highs not seen since 1990.
When presented with economists’ concerns, Yellen responded, “I really don’t think that is going to happen,” despite alarming trends highlighted by reports such as The Wall Street Journal’s coverage of skyrocketing anxiety about inflation among financial experts.
Considering her past role as the Federal Reserve Chair, tasked with curbing inflation, her current stance seems incongruous with the responsibilities she once held.
While the complexities of inflation extend beyond national actions, the Biden administration’s response has often appeared dismissive or misleading. Seemingly unconcerned with burgeoning economic evidence, they pushed forward expansive fiscal policies.
Even as Democrats funneled trillions into the economy and propped up unemployment benefits amid a recovering job market, they maintained aggressive spending initiatives. Remember, these expenditures were in addition to the consequential “Covid relief” bill and infrastructure investments tallying over a trillion dollars.
Poking fun at Republicans who opposed their expansive bills, the Democrats were confident in their Keynesian economic strategies, branding their policies as necessary up to the 2022 midterms. Yet, as inflation soared and approval ratings dipped, these same officials used inflation as a rationale for more spending.
The administration’s argument that the “Inflation Reduction Act” would ease inflation now seems dissonant with the ongoing fiscal impacts. Quirks in the administration’s messaging remain, such as misleading suggestions that recent energy policies have contributed to the modest easing of inflation rates.
And despite executive orders that have arguably stirred market uncertainties, Yellen maintains there is a link between the administration’s actions and the subtle deflationary trend, sidestepping the larger consequences of their policies.
Looming above is the specter of past political maneuvers, and the sentiment that without accountability, history repeats itself. Yellen’s assertions of regret leave many skeptical in the face of repeating patterns of political posturing and strategic misdirection.
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