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Biden Treasury Sec. Janet Yellen Contradicts Psaki, Inflation Likely to Remain “Very Uncomfortably High”

Biden Treasury Sec. Janet Yellen Contradicts Psaki, Inflation Likely to Remain “Very Uncomfortably High”

“I don’t want to make a prediction exactly as to what’s going to happen in the second half of the year, you know, we’re likely to see another year in which 12-month inflation numbers remain very uncomfortably high.”

The Biden administration is sending very mixed messages on inflation and the economy. At one point this week, White House Press Secretary Jen Psaki downplayed the problem and seemed to suggest once again that it’s temporary.

Then Biden’s Treasury Secretary Janet Yellen dropped a major dose of reality in an interview.

Andrew Mark Miller reports at FOX Business:

Treasury Sec. Yellen contradicts Psaki: Likely to see another year of ‘very uncomfortable’ inflation

Treasury Secretary Janet Yellen appeared to contradict the White House in a Thursday interview after saying that she expects another year of “uncomfortably high” inflation.

“I think there’s a lot of uncertainty related to what’s going on with Russia and Ukraine and I do think that it’s exacerbating inflation,” Yellen said on CNBC Thursday. “I don’t want to make a prediction exactly as to what’s going to happen in the second half of the year, you know, we’re likely to see another year in which 12-month inflation numbers remain very uncomfortably high.”

Earlier in the day, White House Press Secretary Jen Psaki suggested inflation would “moderate” at the end of this year and that it continues to be the “projection” that high inflation will be “temporary.”

“We rely on the assessment of the Federal Reserve and outside economic analysts who give an assessment of how long it will last. The expectations and their assessment at this point is that it will moderate at the end of the year,” Psaki said.

See Yellen’s interview below:

Here’s a good side-by-side comparison:

Just to give you an idea of where we are, inflation just hit the highest spike since 1982.

From the Associated Press, via U.S. News & World Report:

US Inflation Soared 7.9% in Past Year, a Fresh 40-Year High

Propelled by surging costs for gas, food and housing, consumer inflation jumped 7.9% over the past year, the sharpest spike since 1982 and likely only a harbinger of even higher prices to come.

The increase reported Thursday by the Labor Department reflected the 12 months ending in February and didn’t include the oil and gas price surges that followed Russia’s invasion of Ukraine on Feb. 24. Since then, average gas prices nationally have jumped about 62 cents a gallon to $4.32, according to AAA.

Even before the war further accelerated price increases, robust consumer spending, solid pay raises and persistent supply shortages had sent U.S. inflation to its highest level in four decades. What’s more, housing costs, which make up about a third of the government’s consumer price index, have risen sharply, a trend that’s unlikely to reverse anytime soon.

“The numbers are eye-watering, and there is more to come,” said Eric Winograd, senior economist at asset management firm AllianceBernstein. “The peak in inflation will be much higher than previously thought and will arrive later than previously expected.”

It’s scary to think where we could be a year from now if nothing changes.

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Comments

You can only print so much money before it loses value.

healthguyfsu | March 12, 2022 at 2:18 pm

This country has a major problem. Trump had too many political enemies in the media (so good things weren’t sufficiently fostered and celebrated hindering progress) and in the DC mouthpiece bureaucracy. Biden doesn’t have enough (so bad things aren’t watch-dogged and exposed precipitating decline).

All in all, that makes for a very confused, divided, and ill-informed citizenry. But I guess that’s precisely the goal of the nanny state big government leftists…the problem is everyone will suffer for it, the duped and the leary.

It’s going to get worse. IMO, the only curb for inflation at this late date will be a demand collapse; recession. We have created too many dollars chasing too few products; $6 Trillion in the last two years alone.

10% inflation for the next several quarters is a no-good, horrible outlook. 10% inflation for the next several quarters with Joe Biden having 3-more years left in his term is exponentially worse.

Presuming Putin doesn’t kill everyone in a nuclear firestorm in the near-term, it may be so bad by the time 2024 finally gets here, we may wish that he had.

The amateur “geniuses” at the Fed still haven’t raised rates to combat inflation because it will explode national debt. National debt the monetarists at the Fed advocated for because they could simply print money to cover the spending. Now they have put the nation in a Gordian Knot. They can’t raise rates to combat inflation, but they can’t keep it low because inflation will run out of control. Either way, the economy will be crushed. Of course, the least evil of the options is to raise rates, since it will for the federal government to stop spending.

    AF_Chief_Master_Sgt in reply to Guardian79. | March 13, 2022 at 12:36 pm

    Well, if people are starving because inflation has put us on a collision course to collapse, we won’t have to worry about Millennials screams about Intersectionality, LGBTQWERTY, and the other left wing claptrap.

    No one cares about your mental illness when they are scratching the earth for food.

    I bet very few people in Venezuela are concerned whether their neighbor has tits and a dïck.

Reality contradicts Psaki. Every dmn day. I

Not progressive costs, but progressive prices that are progressed with unbacked credit emissions, exacerbated by single/central/monopolistic economic models.

    AF_Chief_Master_Sgt in reply to n.n. | March 13, 2022 at 12:37 pm

    But, but, but THE BOSTON UNIVERSITY economist is telling us everything is OK.

Liberals are people who are ecstatic that their hourly wage has gone up 15% in the last year. They seem oblivious to the fact that inflation has gone up 25%. Whatever amount that they got in those stimulus checks has already been absorbed by higher costs. Orange man bad.

Why does Yellen come across as this condescending schoolmarm, cringeworthy. I literally cannot listen to her speak.

Psaki has been willingly been groomed to be an insider liar, wallowing in the swamp evil will do that to a person. She is clueless, only spouting what they tell her.

Case in point: She and Brandon flat out lied about oil companies not exercising the 9000 drilling permits, blaming them instead of themselves…industry professionals say it is the new fed regs hamstringing companies from doing so. The Montana Petroleum Association has taken matters into their own hands, in full defiance of Mr. MAGU’s executive orders they plan to reopen forced dormant Bakken rigs. Now if the Keystone XL boys did t(e same and restarted construction I suspect most of America would support the civil disobedience.

    AF_Chief_Master_Sgt in reply to Camperfixer. | March 13, 2022 at 12:42 pm

    !!!!!!!!!!

    Civil disobedience!

    That’s raciss and blatant insurrection.

    “How Dare You?” (insert breathy Greta Turdburg voice)

robust consumer spending, solid pay raises and persistent supply shortages had sent U.S. inflation to its highest level in four decades

No. Inflation is always and everywhere a monetary phenomenon.

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