U.S. Treasury Secretary Janet Yellen does not believe inflationary pressures are attributable to the stimulus policies enacted after the Covid-19 outbreak. While speaking to lawmakers at a House Finance and Banking Committee meeting on Wednesday, Republicans criticized Yellen for not knowing about the risks of inflation. The U.S. senator from Wyoming questioned the Treasury secretary’s “statements and decisions” regarding record gasoline prices and rising inflation.
Yellen claimed the stimulus package “brought great rewards to Americans” – Republican senator said the US bailout “overheated the economy”
Treasury Secretary Yellen on Thursday downplayed the theory that stimulus from the American Rescue Plan and other monetary expansionary policies has contributed significantly to the current rise in inflation. Treasury Secretary Yellen told the House Economic Affairs Committee that “the success of the policies we have adopted is an economy with the strongest labor market in the entire postwar period, arguably in the entire postwar period” (18) (19). She added that the spending “has brought Americans great rewards and has been at best a modest contribution to inflation.”
A June 3-6 Quinnipiac University pollfound that Americans are more concerned these days with hot inflation plaguing the U.S. economy than with the “assault weapons” ban. Despite the Treasury Secretary’s comments, Republicans like Senator John Barrasso of Wyoming are not convinced by Yellen’s views.” Is there a risk of inflation? You answered, ‘I think there is a small risk,'” Barrassotold Yellen on Wednesday. Barrasso added,
Given that, one wonders why Americans should put their trust in your declarations, decisions and recommendations today.
Republican Senator John Thune of South Dakota believes the trillions spent on the stimulus package have caused the inflationary problems America is facing. Thune explained to the House Finance and Banking Committee, “I think there is no question that last year’s $2 trillion bill overheated the economy and created the mess we have today.” Republican Senator Darrin LaHood, R-Illinois, said he was puzzled by the Biden administration’s lack of bailout, LaHood said, “I think it’s a shame that the Biden administration has not taken action to fix the problem.
As I listen to you here today and look at what is not being done by this administration, it is really puzzling in many ways whether the administration is tone deaf, has not noticed, or is just now realizing.
Biden declares Americans are “financially comfortable” while his administration is accused of encouraging power-hungry politicians
Just recently, American President Joe Bidentold the American people that “families have less debt” and “average savings have increased” since he took office. However, according to statistics from the U.S. Bureau of Economic Analysis (BEA), U.S. savings have plummeted to levels not seen since 2008. Biden’s speech further noted that his administration feels that more Americans “feel more comfortable economically” since 2013.
American television host Tucker Carlsonopined after the first day of Yellen’s testimony on Tuesday that the U.S. Treasury secretary’s “reckless and loose monetary policy has caused inflation.”The Fox News anchor said Yellen’s monetary policy was more power He said it was typical of a bureaucrat seeking more power.
“Within a year, Yellen abandoned all the traditional constraints on monetary policy,” Carlson said.
“Instead, she has been publicly harping on things like racial equality and environmental justice. These are issues that, unlike economics, cannot be quantified or clearly defined. Thus, they are the perfect vehicle for power-hungry politicians who want to become more powerful.
In her testimony, Chair Yellen emphasized that the White House is focused on keeping inflation under control at pre-pandemic levels and that addressing inflationary pressures is the “administration’s top priority.”A Treasury official corroborated Yellen’s remarks, noting that “the unparalleled strength of the U.S. recovery will allow our country to address global challenges such as inflation and Russia’s attack on Ukraine from a position of strength.”
Image credit:: Shutterstock, Pixabay, Wiki Commons