US Treasury Secretary Janet Yellen does not think inflationary pressures stemmed from stimulus policies implemented after the outbreak of Kovid-19. Speaking to lawmakers on Wednesday during the House Ways and Means Committee, Republicans criticized Yellen for not knowing about the risks to inflation. A US senator from Wyoming has questioned the Treasury secretary’s “announcements and decisions” regarding record gas prices and rising inflation.
Yellen Claims Stimulus ‘Outstanding Award for Americans’ – Republican Senator Says US Rescue Plan ‘Heated the Economy’
On Wednesday, Treasury Secretary Janet Yellen rejected the theory that stimulus from the US hedge plan and other monetary expansion policies contributed significantly to the current rising inflation. Yellen remarked during his House Ways and Means Committee statements, “The success of the policy adopted is that we have an economy with the strongest labor market, arguably in the entire post-war period.” He added that the spending provided “outstanding rewards for Americans and, at most, it contributed marginally to inflation.”
According to a survey conducted June 3-6 by Quinnipiac University, the US economy is more concerned with hot inflation these days than by banning “weapons of attack”. Despite the Treasury secretary’s remarks, Republicans like Wyoming Senator John Barrasso are not convinced by Yellen’s opinion. “Is there a risk of inflation? You answered, ‘I think there’s a small risk,'” Barrasso told Yellen on Wednesday. Barrasso said:
Given that, it makes me wonder why Americans should trust your pronouncements and decisions and recommendations today.
John Thune, a Republican senator from South Dakota, believes the trillions spent on stimulus plans are adding to the inflation issues America is facing. “I think there’s no question that the $2 trillion bill last year overheated the economy, and that’s why we have the mess today,” Thune explained during the House Ways and Means Committee. Republican Senator Darin LaHood of Illinois said he was confused by the Biden administration’s lack of measures. Lahood said:
As I listen to you here today, and I see what has not been done by this administration, it is really perplexing in many ways whether the administration is deaf or unaware or just becoming aware.
Biden declares Americans to ‘feel financially comfortable’ while his administration is accused of power-hungry politicians
More recently, US President Joe Biden told the American public That “families are taking on less debt” and “their average savings have gone up” since he became president. However, data from the US Bureau of Economic Analysis (BEA) show that US savings have fallen to levels seen since 2008. Biden’s speech further added that his administration “feels financially comfortable” to more Americans than it has been since 2013.
US television host Tucker Carlson said Tuesday after the first day of Yellen’s testimony that the US Treasury secretary’s “reckless, loose money policies caused inflation.” The Fox News anchor said Yellen’s monetary policy is typical of bureaucrats who want more power.
“Within a year, Yellen had given up on the traditional constraints of monetary policy,” Carlson said. “Instead, she was publicly ranting about things like racial equity and environmental justice. Now, those are issues that, unlike economics, cannot be quantified or even specifically defined. So they are ideal vehicles for power-hungry politicians hoping to become more powerful.”
Yellen stressed during his testimony that the White House is focused on bringing inflation back to pre-pandemic levels, and that addressing inflationary pressures is “the administration’s top priority.” A Treasury official supported Yellen’s remarks, saying that “the unparalleled strength of America’s recovery enables our country to meet global challenges such as inflation and Russia’s attack on Ukraine.”
What do you think of Janet Yellen’s House Ways and Means Committee testimony on Wednesday? Let us know what you think about this topic in the comment section below.
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