{"id":1078750,"date":"2021-12-02T23:14:23","date_gmt":"2021-12-03T04:14:23","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1078750"},"modified":"2021-12-02T23:14:26","modified_gmt":"2021-12-03T04:14:26","slug":"watch-team-transitory-collapses-as-yellen-surrenders-on-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-team-transitory-collapses-as-yellen-surrenders-on-inflation\/","title":{"rendered":"Watch: Team Transitory Collapses as Yellen Surrenders on Inflation"},"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\">18<\/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%2Fwatch-team-transitory-collapses-as-yellen-surrenders-on-inflation%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=1078750&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--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/12\/3e3f2h9-e1513173110304.jpg\" class=\"ff-og-image-inserted\" \/><\/div>\n<p class=\"subheading\">So much for the idea that inflation would be transitory.<\/p>\n<p>Treasury Secretary Janet Yellen on Thursday said she believed it was time to retire the word transitory when it comes to describing inflation and warned of the possibility that the Omicron variant could exacerbate inflation.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>\u201cI am ready to retire the word transitory,\u201d Yellen said in an interview with Reuters. \u201cI can agree that that hasn\u2019t been an apt description of what we are dealing with.\u201d<\/p>\n<p>\n<iframe loading=\"lazy\" title=\"LIVE: U.S. Treasury Secretary Janet Yellen speaks to Reuters\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/pgd9hEIjKQM?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/p>\n<p>On Tuesday, Fed chairman Jerome Powell said he was ready to \u201cretire\u201d transitory.&nbsp; Powell was one of the first government officials to use the word transitory to describe inflation. On Tuesday, Powell said it was not meant to indicate that inflation would be \u201cshort-lived\u201d but rather to indicate that the transition to faster-rising prices was based on temporary economic constraints that would eventually be overcome.<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>That explanation, however, did not quite align with the way Powell and Biden administration officials used the term earlier this year, often clearly implying that inflation would likely fade without intervention from the Fed. President Joe Biden went so far as to claim that no \u201cserious\u201d economist was worried about \u201cunchecked inflation.\u201d Yellen, who was Fed chair before Powell, said several times that inflation might last several months but not much longer than that.<\/p>\n<p>One reason Yellen and Powell were caught offsides by inflation is that they underestimated the supply-side constraints of the pandemic and the Delta variant wave of infections. Instead, they focused economic aid on supporting demand in the economy, in part because of the widespread belief among Biden administration and Fed officials that the Great Recession\u2019s economic damage was prolonged because too little demand-side stimulus was provided, In short, they fought the last economic war instead of the pandemic crisis.<\/p>\n<p>Both Yellen and Powell have changed their views in light of the past year\u2019s experience. They now see that the pandemic and the public\u2019s response to rising infections can be inflationary along a number of vectors. Out-of-work Americans may hesitate to rejoin the workforce or stay in jobs that have a lower risk of infection, even if the economic need and compensation is greater elsewhere. Global supply chains can freeze up when factories or ports in Asia are shuttered to fight outbreaks. And consumers shift demand to goods from services.<\/p>\n<p>Yellen on Thursday warned that the omicron variant could also have inflationary effects.<\/p>\n<p>\u201cNow the new variant, the Omicron variant, the pandemic could be with us for quite some time and hopefully not completely stifling economic activity but affecting our behavior in ways that contribute to inflation,\u201d Yellen said.&nbsp;\u201cThis could again exacerbate supply chain and inflation problems.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>So much for the idea that inflation would be transitory. Treasury Secretary Janet Yellen on Thursday said she believed it was time to retire the word transitory when it comes &#8230;<\/p>\n","protected":false},"author":11,"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-1078750","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\/1078750","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\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1078750"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1078750\/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=1078750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1078750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1078750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}