An interviewer was taken aback after Treasury Secretary Janet Yellen downplayed the impact of America’s rising inflation. With the nation groaning under the weight of soaring food costs, Yellen was asked if she had felt “sticker shock” when grocery shopping.
However, to the bewilderment of viewers, Yellen replied emphatically, “No,” drawing anger from critics. This response from the U.S. Treasury Secretary made people feel she was out of touch with the plight of Americans, resulting in a heated backlash.
Inflation: A Crucial Election Issue
Yellen’s interview was another chance to sell the Biden administration to the American people. But to do so, the Treasury Secretary had to surmount a huge challenge.
Inflation has reached an all-time high under the Biden administration, and Democrats fear it could impact voters’ decisions in November. Therefore, many voters were anxious to hear what the secretary had to say.
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How Bad is America’s Inflation?
For America’s inflation to become a leading election issue, that’s enough indication of how bad it has become. Across the nation, grocery prices have gone up by double-digit percentages since Biden took office.
Almost every week, American shoppers stumble on new prices on grocery shelves. “Sticker shocks” have become a familiar experience as the middle class continues to lament the high costs of living.
Yellen Drops the Bombshell
During the interview, Yellen admitted that she visited the grocery shop. The interviewer, Yahoo Finance’s Jennifer Schonberger, then took advantage of the opportunity to ask Yellen if she had experienced the much talked about “sticker shocks.”
“It’s sticker shock, isn’t it? …Global food commodity prices have also come down, but food prices still remain high,” she quizzed. To Schonberger’s amazement, the secretary replied in the negative.
Yellen Explains Her Position
The secretary, who is a multimillionaire herself, provided some clarification for her views. “I think largely it reflects cost increases, including labor cost increases that grocery firms have experienced, although there may be some increases in margins.”
She added that the public should expect inflation to fall to the government’s 2% target by the first quarter of next year. Can Americans bank on this?
The Biden Administration is Tackling the Housing Crisis
One of the resultant challenges of rising grocery prices is skyrocketing housing costs. As people spend more on food, a ripple effect extends to other expenses, including housing.
The Biden administration has launched new efforts to shore up access to affordable housing. Yellen has also joined the government’s promotional campaign for the initiative. Recently, she touted the investment at an event in Minneapolis.
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Biden’s $100 Million Housing Intervention
Biden’s housing intervention involves $100 million in funding, additional support for the administration’s affordable housing financing program.
“The awards announced today build upon the historic levels of funding made available for housing, infrastructure, and community resilience by the Biden-Harris Administration,” Vice President Kamala Harris announced the plan in her speech.
Yellen Shifted the Blame Away From the Administration
Speaking further, Secretary Yellen declined to point fingers at the White House. Of course, many Americans believe that the Biden administration is largely at fault for the slow decrease in inflation.
Yellen, instead, blamed the problem on housing costs. Even though the inflation rate has dropped from its 2022 all-time high of 9.1%, Americans have been worried over its inability to fall below 3%.
Criticisms Have Poured In
Like Sharks at the smell of blood, Janet Yellen’s comments have unsurprisingly drawn lots of criticism. A Palm Beach, Florida resident has called the secretary “tone deaf.”
“The dramatic increase over a relatively short amount of years is a betrayal,” the angry resident commented in a newspaper column. Another comment described the secretary as “out of touch” with the reality of the people.
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Does Yellen Really Shop Every Week?
A New York resident who bared their mind doesn’t believe that. “I’ve been saying for months, there’s no way these ‘economics’ go food shopping every week.”
Another concerned American, Madeleine, a Baltimore resident, added her voice to the doubts. “Someone worth $20 million doesn’t pay attention to the prices,” she declared. Apparently, Yellen’s comments have hurt rather than improved Biden’s re-election chances.
Trump Makes Inflation A Major Talking Point
As expected, former President Donald Trump has used the inflation rate as a campaign weapon. Fortunately for him, the inflation rate only went above 3% once in his four-year stint at the Oval Office.
On the other hand, President Biden has debunked claims that Americans are having it rough in the market. He argued that people have had more money to spend under his administration.
“Inflation is Real, But…”
Although President Biden admitted that inflation is real, “…but the fact is that you have to look at what people have, they have the money to spend,” he maintained.
President Biden has placed some of the blame on “greedy corporations,” who he claims have been responsible for the decline in consumer confidence. As convincing as the president sounds, he would have to dig deeper to placate Americans.
The Blame Game
Secretary Yellen’s denial of the administration’s role in the inflation is following Biden’s footsteps. But the President has gone even a step further in his bid to save face ahead of the elections.
While Donald Trump has consistently blamed the President for the poor state of the economy, Biden has shifted focus to Trump’s proposed solutions. The president has spent a lot of time criticizing Trump’s economic proposals.
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