Yellen: ‘It’s Important to Put Inflation in Context of an Economy That is Improving a Lot’

[mystery-ak]

Yellen: ‘It’s Important to Put Inflation in Context of an Economy That is Improving a Lot’


https://www.youtube.com/watch?v=JTu7Ozaske0&ab_channel=FacetheNation

Pam Key14 Nov 2021

Treasury Secretary Janet Yellen said Sunday on CBS’s “Face the Nation” that she thought it was important to put the recent rising prices in the context of an improving economy.

Partial transcript as follows:

    MARGARET BRENNAN: You have said that inflation is likely to be with us until the second half of next year. Are you confident that prices for the average American will be down by the time we head into next November and Election Day?

    YELLEN: Well, it really depends on the pandemic. The pandemic has been calling the shots for the economy and for inflation. And if we want to get inflation down, I think continuing to make progress against the pandemic is the most important thing we can do. I think it’s- it’s- it’s important to realize that the cause of this inflation is the pandemic. It shut- all but shut down our economy. It boosted unemployment to almost 15% and we’ve been opening up in fits and starts. And the pandemic is really responsible, in its impact for the inflation that we’re seeing. It led to a dramatic increase in demand for- for products. Households were unable to spend on services — going out to eat and traveling. They shifted as they stayed at home, worked more from home. They shifted their spending on to goods that led to a surge in the demand for products. And although the supply of products has increased in the United States and globally, not as much as demand. You know, we- President Biden’s top priority after he was elected was, of course, vaccinations, trying to defeat the pandemic and get people back to work. We passed the American Rescue Plan, and when you think about what would have happened without that, I mean, what a success that unemployment has declined from almost 15% to under 5% now. Americans feel confident about the job market. Quits have increased up to record numbers, which is a sign that people are getting outside offers. They’re seeing wage increases. That is something that didn’t have to happen, and it really reflects the support that we gave to Americans to keep up their spending and make it through the pandemic. But with supply disruptions and this huge shift in- in- in demand toward products, we are seeing some broad-based price increases. We have shortages of semiconductors; that’s really caused new and used car prices to rise, car production to decline–

    BRENNAN: Twenty-six percent year over year for used cars, gasoline up 50%, eggs 12%, milk 6%, coffee 6%. So when–

    YELLEN: We are seeing some big increases in prices.

    BRENNAN: When does it get better? When do those spikes abate?

    YELLEN: You know, when the economy recovers enough from COVID, the demand patterns, people go back to eating out, traveling more, spending more on services, and the demand for products, for goods begins to go back to normal. And also, labor supply has been impacted by the pandemic. Labor force participation is down, it hasn’t recovered.

    BRENNAN: Mhmm.

    YELLEN: Probably many people remain concerned about the health consequences of working. Child care arrangements may be disrupted. But with- when labor supply normalizes and the pattern of demand normalizes, I- and I would expect that if we’re successful with the pandemic to be sometime in the second half of next year, I would expect prices to go back to normal.

    BRENNAN: Because there could be a political cost to this, which is why I ask about November, of course.

    YELLEN: Yes. Well, there’s an economic cost and Americans feel that. And when gas rises – the average is now over $3 a gallon, in some places, quite a bit higher – Americans notice it and it- it makes- it makes a difference. But I just think it’s important to put inflation in context of an economy that is improving a lot from what we had right after the pandemic and is making progress.

https://www.breitbart.com/clips/2021/11/14/yellen-its-important-to-put-inflation-in-context-of-an-economy-that-is-improving-a-lot/

[Free Vulcan]

An improving economy with inflation is like trying to fill a bucket full of water while it has a respectable sized hole in the bottom.

[GtHawk]

An improving economy with inflation is like trying to fill a bucket full of water while it has a respectable sized hole in the bottom.

She really is tone deaf isn't she? There is a huge segment of our society, seniors, the poor and the lower middle class that were making headway under Trump but are now having their heads forced under water by Biden policy created runaway inflation. What do people give a damn about a so called increasing economy when their spending power is being reduced weekly if not daily. I saw gas go up 10 cents overnight......God bless that roaring economy, eh?

[skeeter]

What the hell good is an ‘improving economy’ when your spending power is diminishing by the day and you’re virtually working harder for less money?

[Hoodat]

What the hell good is an ‘improving economy’ when your spending power is diminishing by the day and you’re virtually working harder for less money?

The Biden coup doesn't give a damn about your standard of living.

[skeeter]

The Biden coup doesn't give a damn about your standard of living.

I believe he thinks about lowering it alot.

[Hoodat]

I believe he thinks about lowering it alot.

Simply levelling the playing field with all the shithole countries.

[IsailedawayfromFR]

Translation:  You peasants just shut up