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Treasury Secretary Janet Yellen acknowledged that she was wrong when she said that inflationary pressures, which were driving up gasoline prices and food, were temporary.
“ I think I was wrong then about the path that inflation would take”, affirmed the Secretary of the Treasury in an interview with CNN.
Yellen was questioned about the statements she made in 2021, when inflationary pressures were beginning to be felt, at the same time that the economy was beginning an opening after the worst months of the covid pandemic-19.
A year ago, the government official of President Joe Biden considered that the movements in inflation they only represented a “small risk ”.
Months later, and with inflation at 8.3%, from According to the April report, the Treasury secretary admitted that then, in 2021, she did not have all the elements to notice the problems that would come in 2022.
Among the unforeseen scenarios, according to Yellen, highlight the continuation of the pandemic with new outbreaks and confinements in other countries, as well as Russia’s military invasion of Ukraine.
“There have been great unforeseen shocks to the economy that have spiked energy and food prices and supply bottlenecks that have severely affected our economy that I, at that At the time, I did not fully understand, but we recognize it now,” he said.
Meanwhile, millions of American families see how the dollars they earn each time reach less, while So large retail companies, such as Target and Walmart, report changes in purchasing habits that affect their earnings reports.
Given this, the administration of President Biden announced this week, in an article published in The Wall Street Journal, a new plan to contain inflation and prevent the economy from becoming paralyzed along the way.
Subsequently, Biden met with Secretary Yellen and with the president of the Federal Reserve, Jerome Powell, to discuss the inflation control strategy.
According to a CNN report, in that meeting, the president reiterated his respect for the autonomy of the Fed and confidence in the decisions that Powell heads for the rate hike as an inflation control mechanism.
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