The Biden administration acknowledged Tuesday that it was wrong to downplay the threat of rising inflation last year as the White House works to combat rising consumer prices that have hampered Joe Biden's presidency.
“I think I was wrong then about the path that inflation would take,” Treasury Secretary Janet Yellen said in an interview on CNN.
Yellen in March 2021 said inflation posed only a “small risk.” Two months later, she said she didn't anticipate inflation would “be a problem.” Earlier that spring, Biden signed his $1.9 trillion COVID-19 rescue plan into a law, providing a boost in spending that his critics blame for accelerating inflation.
As I mentioned, there have been unanticipated and large shocks to the economy that boosted energy and food prices, and supply bottlenecks, that have affected our economy badly that I, at the time, didn't fully understand,” Yellen told CNN. “But we recognize that now.
The secretary's admission is the most direct concession yet from the White House that officials failed to grasp the scale of inflation that would come as the U.S. recovered from the coronavirus pandemic. The administration later predicted the rise in consumer prices would be temporary.
https://www.yahoo.com/money/respect-fed-biden-vows-wont-184710018.html
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