The Treasury admits she was wrong about “the path of inflation”

“I think I was wrong about the path of inflation,” Yellen told CNN’s Wolf Blitzer in the “Situation Room” when asked about her comments from 2021.

Approval was the latest sign that the government’s expectations for economic normalization were disrupted by the continued pandemic. War in europe..

“As I said, there was an unexpected big shock to the economy that pushed up energy and food prices and caused supply bottlenecks that had a negative impact on the economy. At that time, I fully understood. I didn’t, but now I’m aware of it. ”

Yellen and other White House officials once pointed out supply chain disruptions and demand over supply, assembling inflation as a temporary side effect of the economy’s return to normal after the pandemic.

Still, months later, inflation is moving at nearly 40 years.

Recent economic data show optimism that inflation may have peaked in March for the first time in 40 years, but economists say it’s pretty long before inflation returns to healthy levels. It warns that it may take some time. In response, the White House has begun a month-long effort to show its focus on the economy.

Push begins on Monday with President Joe Biden’s editorial The Wall Street Journal And following Tuesday, the Oval Office sat between Biden, Federal Reserve Chairman Jerome Powell, and Yellen.

“We strongly believe in sharing the Fed’s priorities in lowering inflation and supporting the Fed’s independence to take the necessary steps,” Biden said at the meeting.

The Powell-led federal government It has been criticized for being slow to deal with high inflation by ending emergency support for the economy and starting to raise interest rates. However, the Fed has pledged to raise interest rates quickly, raising interest rates by 0.5 percentage points for the first time since 2000 earlier this month. The US central bank has suggested a more aggressive rate hike in the coming months.
Beyond Yellen, many other financial aids have flooded cable news with the hope of pushing the message that Biden is dedicated to lowering gasoline, food and home prices. .. Depression in his approval rating..

President Janet Yellen said on Tuesday that he knew “what important and huge burden inflation is putting on US households.”

CNN’s Matt Eagan contributed to this report.


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