Politics Yellen says COVID-19 pandemic is 'responsible' for inflation increases
The inflation tax is not only real, it's massive
In 2021, the inflation tax will be as large if not larger than the revenues the federal government will collect from individual income taxes. The inflation tax is not only real, in 2021 it is really large. No wonder governments love central banks. Paul H. Kupiec is a resident scholar at the American Enterprise Institute (AEI), where he studies systemic risk and the management and regulations of banks and financial markets.
Treasury Secretary Janet Yellen in a new interview said the COVID-19 pandemic is the cause for the record inflation increase the U.S. is seeing nationwide.
Asked by host Margaret Brennan on Sunday in a pre-taped interview on CBS's "Face the Nation" if she is confident prices for the average American will be back at normal levels by next November, Yellen said it "really depends on the pandemic."
GOP sees inflation as winning issue
Republicans are looking at surging inflation as a winning issue as the party molds its attack lines against President Biden and down-ballot Democrats ahead of the midterms. Annual inflation jumped to 6.2 percent in October, according to data released Wednesday by the Labor Department, reaching the highest level in more than 30 years. Prices rose 0.9 percent last month alone, marking the third straight month of accelerating inflation. Republicans have spent months blaming Biden and Democrats for rising food and gas prices, and inflation was a central focus of Gov.-elect Glenn Youngkin's (R ) successful bid for the Virginia governor's mansion.
"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," Yellen told Brennan in the interview that aired on Sunday.
The Labor Department released new data on Wednesday illustrating that after increasing 6.2 percent in the 12-month period ending in October.
The announcement set off alarm bells throughout the U.S., as Americans grapple with rising prices ahead of the busy holiday season.
Yellen said the pandemic triggered the massive inflation because it "all but shut down our economy," and "led to a dramatic increase in demand for - for products."
Democratic Sen Hirono Attacks Manchin for Opposing Social Spending Bill Over Inflation
"I disagree with Joe that Build Back Better is going to add to inflation," the Hawaii senator said, pointing out that economists have said the bill is "anti-inflationary."Earlier this week, Manchin, a moderate Democrat, signaled hesitation over supporting the spending bill due to inflation. Appearing on MSNBC on Saturday morning, Hirono addressed her Senate colleague's stance on the legislation.
"The pandemic is really responsible, in its impact for the inflation that we're seeing," she emphasized.
"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," she added.
Asked by Brennan when she predicts prices will revert back to normal levels, Yellen said that if the U.S. is "successful with the pandemic" that could occur "sometime in the second half of next year."
Washington Nationals sued by ex-employees over vaccine firing .
The Washington Nationals are being sued by two former employees who were fired for refusing to comply with the team’s COVID-19 vaccine mandate. Lawrence (Larry) Pardo and Brad Holman were pitching coaches in the Nats’ organization. The two refused to get the COVID-19 vaccine for religious reasons and were fired by the Nats as a result. The team instituted a mandate on Aug. 12 that went into effect on Sept. 10, leading to the firing of both men.Now the two have filed a lawsuit against the club, TMZ Sports reports.