Sport Inflation Will Only Drop by 2022 Midterm Elections If COVID Eases: Janet Yellen
Yellen tries to tamp down Democrats fury over evictions ban
Treasury Secretary Janet Yellen on Tuesday sought to soothe tensions with House Democrats over emergency rental assistance, telling furious lawmakers that the Biden administration is fighting aggressively to get billions of dollars in previously approved aid to those at risk of being evicted.But in the conference call with the House Democratic Caucus, Yellen reiterated the administration's claim that it lacks the power to extend a recently expired eviction moratorium that had protected vulnerable renters through much of the COVID-19 crisis.
As rising inflation threatens President's agenda and the Democratic majorities in , Treasury Secretary said that prices will only fall by the 2022 midterm elections if the pandemic eases.
"It's important to realize that the cause of this inflation is the pandemic," Yellen said on' Face the Nation Sunday. "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."
Is the Media to Blame for Biden’s Bad Poll Numbers?
Or is it “the economy, stupid”?In mid-August, voters approved of the president by a margin of 50 to 43.8 percent in FiveThirtyEight’s polling average. Today, they disapprove of him by a margin of 51.1 to 43.2 percent.
Asked if prices for the average American would be down by next November, Yellen linked economic recovery to COVID-19.
"It really depends on the pandemic," she said. "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."
A worker shortage boosted annual wage growth to 4.9 percent in October. However, the increase has been overshadowed by the pace of inflation, which has led to an overall drop in real earnings and purchasing power in most industries.
Yellen acknowledged that the country has been seeing "some big increases in prices" due to a "dramatic increase in demand for products."
Biden forced to get real on inflation as the price of nearly everything shoots up
Rising consumer prices have quickly become one of the White House's most urgent concerns as Americans grow unsettled at the higher cost of goods -- and place the blame on President Joe Biden. © Mandel Ngan/AFP/Getty Images President Joe Biden speaks on the authorization of the Covid-19 vaccine for children aged 5 to 11, in Washington, DC on November 3.
The consumer price index rose last month to over 6 percent, the highest in over two decades, according to a report released by the Department of Labor.
After months of defense rhetoric on rising inflation, the White House has shifted its messaging, candidly acknowledging the worsening economic issue that has cursed Biden's presidency.
White House National Economic Council Director Brian Deese on Sunday cited high inflation as a reason to push the nearly $2 trillion social spending and climate bill through Congress.
"This bill is actually going to address the core costs that American families are facing in child care, in housing, in health care," he said on' This Week.
Deese echoed Yellen in linking economic recovery to the country's COVID-19 response.
"We have to finish the job on COVID. We know that the more that people feel comfortable getting out into the economy, going to movies rather than buying television at home, working in the workplace, the more we can return a sense of normalcy to our economy," he said.
Recent polls paint a troubling picture for Biden, asface an uphill battle to maintain control of their razor-thin congressional majorities.
Seventy percent of Americans said the economy is in bad shape, and 55 percent disapproved of the president's handling of the economy in a new ABC News/Washington Post survey.
Newsweek reached out to the White House for further comment.
Inflation narrative is flawed .
There's a big problem with the current inflation narrative: It may not be the whole story. Beyond the Covid-19 pandemic, surging demand and supply chain issues, there's also the roles played by corporate America, President Joe Biden and the Federal Reserve.The inflation narrative is largely set. The coronavirus pandemic created supply chain snarls. It put production out of whack. As demand has roared back following Covid-19 lockdowns, prices have soared.