{"id":1467317,"date":"2022-05-07T08:14:54","date_gmt":"2022-05-07T12:14:54","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1467317"},"modified":"2022-05-07T08:37:56","modified_gmt":"2022-05-07T12:37:56","slug":"treasury-sec-yellen-admits-bidens-policies-have-caused-soaring-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/treasury-sec-yellen-admits-bidens-policies-have-caused-soaring-inflation\/","title":{"rendered":"Treasury Sec Yellen Admits Biden\u2019s Policies Have Caused Soaring Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/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%2Ftreasury-sec-yellen-admits-bidens-policies-have-caused-soaring-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=1467317&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--><h2>White House\u2019s enormous spending causing economic havoc<\/h2>\n<div id=\"authorDate\">\n<p>\u00a0on&#038;nbsp6th May 2022 @ 5.00pm<\/p>\n<\/div>\n<figure title=\"Yellen further explained that the fiscal stimulus and relief package had to support the labor market in response to the many dire forecasts\">\n<div class=\"articleImage\">\n<p><span class=\"creditNew\">\u00a9\u00a0press<\/span><\/p>\n<\/div><figcaption>Yellen further explained that the fiscal stimulus and relief package had to support the labor market in response to the many dire forecasts<\/figcaption><\/figure>\n<p><strong>Treasury Secretary Janet Yellen admitted that President Joe Biden\u2019s $1.9 trillion American Rescue Plan did contribute to inflation.<\/strong><\/p>\n<p>During an interview with <a href=\"https:\/\/www.youtube.com\/watch?v=uTc03vZzCeU\" target=\"_blank\" rel=\"noopener\">The Wall Street Journal<\/a>, the former head of the Federal Reserve admitted that the White House\u2019s enormous spending had played a role in today\u2019s inflationary environment.<\/p>\n<p><em>\u201cSo, look, inflation is a matter of demand and supply, and the spending that was undertaken in the American Rescue Plan did feed demand,<\/em>\u201d she said.<\/p>\n<p>She added that today\u2019s 40-year high inflation was an unintended consequence of the Biden administration attempting to avoid a sharp economic downturn and facilitate full employment.<\/p>\n<p>Yellen further explained that the fiscal stimulus and relief package had to support the labor market in response to the many dire forecasts.<\/p>\n<p><em>\u201cBut I do think it was justified and appropriate at the time, given the risks the economy faced,\u201d<\/em> the treasury secretary stated.<\/p>\n<figure title=\"'I do think it was justified and appropriate at the time, given the risks the economy faced,' the treasury secretary stated\">\n<div class=\"articleImage\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/05\/I-dont-think-its-appropriate.jpg\" alt=\"i do think it was justified and appropriate at the time given the risks the economy faced the treasury secretary stated\" \/><span class=\"creditNew\">\u00a9\u00a0press<\/span><\/p>\n<\/div><figcaption>&#8216;I do think it was justified and appropriate at the time, given the risks the economy faced,&#8217; the treasury secretary stated<\/figcaption><\/figure>\n<p><em>\u201cAt the time that President Biden was inaugurated, we had an economy where forecasters were envisioning very high unemployment for a very long time,&#8221; <\/em>she said.<\/p>\n<p><em>&#8220;We had especially low-wage workers who had been laid off in massive numbers. <\/em><\/p>\n<p><em>&#8220;We saw cars lined up for miles in food banks, Americans worried about not being able to feed their families, get enough to eat. <\/em><\/p>\n<p><em>&#8220;Forecasts were really quite dire.\u201d<\/em><\/p>\n<p>Yellen noted that <em>\u201cthe outlook is very uncertain\u201d<\/em> due to the panoply of risks.<\/p>\n<p>Some of the threats to the post-crisis economy are surging commodity prices, the spillover effects from the war in Eastern Europe, and broader global growth prospects.<\/p>\n<p>Still, she anticipates solid growth and a potential <em>\u201csoft landing\u201d<\/em> for the U.S. economy.<\/p>\n<p><em>\u201cI do believe we\u2019re going to see solid growth in the coming year,\u201d<\/em> Yellen averred.<\/p>\n<p><em>\u201cThe Fed will need to be skillful and also lucky, but I believe it\u2019s a combination that is possible.\u201d<\/em><\/p>\n<p>As <a href=\"https:\/\/www.zerohedge.com\/markets\/janet-yellen-bidens-spending-did-feed-inflation\" target=\"_blank\" rel=\"noopener\">Zerohedge<\/a> notes:<\/p>\n<blockquote><p><em>The Federal Reserve raised the benchmark interest rate by 50 basis points on Wednesday, the biggest increase in more than 20 years, to fight inflation. Fed Chair Jerome Powell purported at a press conference after the Federal Open Market Committee (FOMC) policy meeting that he thinks there is \u201ca good chance to have a soft\u2014or softish\u2014landing or outcome.\u201d<\/em><\/p>\n<p><em>A March NBC News poll found that 38 percent of Americans blamed Biden and his policies for rampant price inflation.<\/em><\/p>\n<p><em>Another Emerson College Poll reported that 39 percent identified the current administration as the cause of today\u2019s higher cost of living.<\/em><\/p>\n<p><em>Former Treasury Secretary Larry Summers had been warning that the American Rescue Plan would trigger inflationary pressures when the legislation was first proposed last year.<\/em><\/p><\/blockquote>\n<p><em>\u201cWe must make sure that it is enacted in a way that neither threatens future inflation and financial stability nor our ability to build back better through public investment,<\/em>\u201d Summers wrote in an op-ed in The Washington Post.<\/p>\n<p>A year later, he acknowledged that the White House failed to heed these warnings, adding that a hefty rescue bill <em>\u201cwould endanger much of the Build Back Better agenda,\u201d<\/em> he penned in another Washington Post opinion piece.<\/p>\n<p>Obama-era economic advisor Stephen Rattner echoed Summers\u2019 inflation concerns, ringing alarm bells that the immense deficit-financed fiscal expansion in 2021 played a significant factor in today\u2019s elevated consumer price index (CPI).<\/p>\n<p><em>\u201cThe $1.9 trillion American Rescue Plan passed in the early days of the Biden administration will go down in history as an extraordinary policy mistake,\u201d<\/em> Rattner said in an op-ed for The New York Times last month.<\/p>\n<figure title=\"'Yellen noted that 'the outlook is very uncertain,' due to the panoply of risks.\">\n<div class=\"articleImage\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/05\/yellen-noted-that.jpg\" alt=\"yellen noted that the outlook is very uncertain due to the panoply of risks\" \/><span class=\"creditNew\">\u00a9\u00a0press<\/span><\/p>\n<\/div><figcaption>&#8216;Yellen noted that &#8216;the outlook is very uncertain,&#8217; due to the panoply of risks.<\/figcaption><\/figure>\n<p>In October, the San Francisco Fed Bank predicted that American Rescue Plan would contribute to elevated inflation in 2022, adding to the personal consumption expenditure (PCE) price index, the Fed\u2019s favorite inflation gauge.<\/p>\n<p>The PCE price index surged to 6.6 percent in March, the sharpest jump on record.<\/p>\n<p><em>\u201cThe estimated impact of the American Rescue Plan on inflation is meaningful, but it is still a far cry from the strong overheating of the 1960s,\u201d<\/em> the research paper stated.<\/p>\n<p>Several months later, the same regional institution noted in its Economic Letter that both the $2.2 trillion CARES Act and American Rescue Plan added to the present-day inflationary environment through <em>\u201can unprecedented injection of direct assistance with a relatively short duration.\u201d<\/em><\/p>\n<p>Stephen Moore, a former member of The Wall Street Journal editorial board and co-founder of the Club for Growth, argued on Fox Business in February that overspending \u201clit the match\u201d of this inflationary tidal wave.<\/p>\n<p><em>\u201cThis is a self-inflicted wound by policies that came into place as soon as Biden came into office,\u201d<\/em> he said.<\/p>\n<p>Many economists and market observers concluded that too much money had been injected into the economy and pursued too few goods.<\/p>\n<p>However, for the last 15 months, Biden has dismissed assertions that his policies have been culpable for inflation. When he entered the White House, the administration denied its stimulus and relief efforts would lead to inflation.<\/p>\n<p>Once prices were elevated, the Oval Office parroted the Fed and claimed it would be transitory.<\/p>\n<p>By the end of 2021, Biden insisted that inflation had peaked.<\/p>\n<p>The latest message is that heightened inflation is a result of Russia\u2019s invasion of Ukraine, referring to it as <em>\u201cPutin\u2019s price hike.\u201d<\/em><\/p>\n<p>But will the U.S. president\u2019s next spending campaigns lead to additional inflationary pressures in the economy?<\/p>\n<p>The trillions estimated for Biden\u2019s social and infrastructure plans <em>\u201cshould not have any real material impact on inflation,\u201d<\/em> said William Foster, vice president and senior credit officer (Sovereign Risk) at Moody\u2019s Investors Service<\/p>\n<p>Mark Zandi, a chief economist at Moody\u2019s Analytics, agrees, averring that they <em>\u201cdo not add to inflation pressures, as the policies help to lift long-term economic growth via stronger productivity and labor force growth.\u201d<\/em><\/p>\n<h4 id=\"title\"><a href=\"https:\/\/neonnettle.com\/news\/17013-yellen-irs-surveillance-of-600-bank-transactions-absolutely-not-spying\" target=\"_blank\" rel=\"noopener\">[READ MORE] Yellen: IRS Surveillance of $600+ Bank Transactions \u2018Absolutely Not\u2019 Spying<\/a><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>White House\u2019s enormous spending causing economic havoc \u00a0on&#038;nbsp6th May 2022 @ 5.00pm   \u00a9\u00a0press Yellen further explained that the fiscal stimulus and relief package had<\/p>\n","protected":false},"author":498,"featured_media":1898322,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Treasury Sec Yellen Admits Biden\u2019s Policies Have Caused Soaring Inflation","footnotes":""},"categories":[],"tags":[],"class_list":["post-1467317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Treasury Sec Yellen Admits Biden\u2019s Policies Have Caused Soaring Inflation","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1467317","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\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1467317"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1467317\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1898322"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1467317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1467317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1467317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}