{"id":1003231,"date":"2021-11-12T12:44:38","date_gmt":"2021-11-12T17:44:38","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1003231"},"modified":"2021-11-12T12:44:40","modified_gmt":"2021-11-12T17:44:40","slug":"yellen-touts-biden-spending-plan-then-promises-inflation-wont-reach-1970s-levels","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-touts-biden-spending-plan-then-promises-inflation-wont-reach-1970s-levels\/","title":{"rendered":"Yellen Touts Biden Spending Plan, Then Promises Inflation Won\u2019t Reach 1970s Levels"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fyellen-touts-biden-spending-plan-then-promises-inflation-wont-reach-1970s-levels%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1003231&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Treasury Secretary Janet Yellen vowed that inflation will not reach levels seen in the 1970s.<\/p>\n<p>On Tuesday, the Biden administration official \u2014 who also served as Federal Reserve Chair from 2014 to 2018 \u2014 touted the \u201cBuild Back Better\u201d agenda to <a href=\"https:\/\/www.marketplace.org\/2021\/11\/09\/janet-yellen-on-debt-inflation-infrastructure-and-what-the-economy-needs\/\">Marketplace<\/a> host Kai Ryssdal.<\/p>\n<p>\u201cWell, I think the economy needs it, and the people need it\u2026 It is really intended to address long-standing problems that have been holding this economy back,\u201d she argued. \u201cIt\u2019s meant to boost long-term economic growth and to address inequities.\u201d<\/p>\n<p>After Yellen listed various aspects of the program \u2014 including universal preschool, child tax credits, new health care programs, and climate change \u2014 Ryssdal pointed out the inflationary risks tied to unfettered government spending. \u201cYou say this is not a short-run stimulus program. And I wonder if that\u2019s the basis for your belief that this will not be inflationary in this economy? Because as you know, inflation is a big deal right now.\u201d<\/p>\n<p>\u201cWell, inflation has been running at higher levels than we\u2019ve been accustomed to seeing for a long time. And I know that really imposes a burden on households,\u201d Yellen responded before arguing that inflation is \u201ca consequence of recovery from a very severe shock due to the pandemic and something that will work itself out over time.\u201d<\/p>\n<p>Later in the interview, Ryssdal asked simply: \u201cWhat if you\u2019re wrong?\u201d&nbsp;<\/p>\n<p>Yellen said: \u201cWell, it\u2019s something to be watched carefully. And I know the Federal Reserve is doing that. Monetary policy would have a role to play if this turns out to be something that\u2019s endemic. In the 1970s, we saw supply shocks turn themselves into endemic inflation, wages increased, prices increased as a consequence. We\u2019re not seeing that now. I don\u2019t believe we will. But if that were the case, the Federal Reserve would have a role to play to keep it under control.\u201d<\/p>\n<p>As Yellen referenced, inflation was high in the 1970s under President Carter, eventually&nbsp;<a href=\"https:\/\/fred.stlouisfed.org\/series\/FPCPITOTLZGUSA\">exceeding<\/a> 13.5% in 1980.&nbsp;<\/p>\n<p>On Wednesday, the Department of Labor <a href=\"https:\/\/www.dailywire.com\/news\/breaking-bidenflation-price-increases-soar-to-30-year-high-outpace-economist-predictions\">revealed<\/a> that year-over-year inflation for consumer prices reached 6.2% in October&nbsp; \u2014 the highest rate of increase in three decades. The data was released days after the Federal Reserve announced that it will begin <a href=\"https:\/\/www.dailywire.com\/news\/as-high-inflation-persists-federal-reserve-unveils-first-official-plan-to-roll-back-stimulus\">tapering<\/a> its monthly asset purchases, signaling the first reduction in aggressive monetary stimulus since the onset of COVID-19 and the lockdown-induced recession.<\/p>\n<p>Economists worry that inflation poses a significant risk to economic growth.<\/p>\n<p>\u201cThe biggest risk to the global economy may no longer be<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Secretary Janet Yellen vowed that inflation will not reach levels seen in the 1970s.On Tuesday, the Biden administration official \u2014 who also served as Federal Reserve Chair from 2014 to 2018 \u2014 touted the \u201cBuild Back Better\u201d agenda to Marketplace host Kai Ryssdal.\u201cWell, I think the economy needs it, and the people need it\u2026 It is really intended to address long-standing problems that have been holding this economy back,\u201d she argued. \u201cIt\u2019s meant to boost long-term economic growth and to address inequities.\u201dAfter Yellen listed various aspects of the program \u2014 including universal preschool, child tax credits, new health care programs, and climate change \u2014 Ryssdal pointed out the inflationary risks tied to unfettered government spending. \u201cYou say this is not a short-run stimulus program. And I wonder if that\u2019s the basis for your belief that this will not be inflationary in this economy? Because as you know, inflation is a big deal right now.\u201d\u201cWell, inflation has been running at higher levels than we\u2019ve been accustomed to seeing for a long time. And I know that really imposes a burden on households,\u201d Yellen responded before arguing that inflation is \u201ca consequence of recovery from a very severe shock due to the pandemic and something that will work itself out over time.\u201dLater in the interview, Ryssdal asked simply: \u201cWhat if you\u2019re wrong?\u201d\u00a0Yellen said: \u201cWell, it\u2019s something to be watched carefully. And I know the Federal Reserve is doing that. Monetary policy would have a role to play if this turns out to be something that\u2019s endemic. In the 1970s, we saw supply shocks turn themselves into endemic inflation, wages increased, prices increased as a consequence. We\u2019re not seeing that now. I don\u2019t believe we will. But if that were the case, the Federal Reserve would have a role to play to keep it under control.\u201dAs Yellen referenced, inflation was high in the 1970s under President Carter, eventually\u00a0exceeding 13.5% in 1980.\u00a0On Wednesday, the Department of Labor revealed that year-over-year inflation for consumer prices reached 6.2% in October\u00a0 \u2014 the highest rate of increase in three decades. The data was released days after the Federal Reserve announced that it will begin tapering its monthly asset purchases, signaling the first reduction in aggressive monetary stimulus since the onset of COVID-19 and the lockdown-induced recession.Economists worry that inflation poses a significant risk to economic growth.\u201cThe biggest risk to the global economy may no longer be a renewed downturn because of fresh virus outbreaks, but may now be higher inflation because of tight goods supplies and excessive wage pressure,\u201d said Goldman Sachs analysts in a recent report. \u201cAlthough we expect a significant part of the goods supply squeeze to abate over the next year, at present the stress on supply chains is substantial and inventories in semiconductors, durable goods, and energy markets are very low. In such an environment, even a moderate production outage resulting from covid outbreaks in China, an energy demand spike related to a cold winter, or other short-term disruptions could have sizable economic effects.\u201dThe Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1003231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1003231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1003231"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1003231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1003231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1003231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1003231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}