The Leaders Of The Treasury And The Federal Reserve Clarify Who Is To Blame For Inflation

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Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell contend that the inflation that is killing the US economy is actually too much of a good thing, claiming that markets were not expecting such a speedy rebound from the Covid disaster.

Powell said on Wednesday that he “knew demand would be robust,” but that he “didn’t grasp [the] severe supply side concerns.” Taking a defensive stance, he stated that the United States was not the only country affected by rising inflation, though he did not mention any other countries.

During a House Energy And commerce Committee hearing on Wednesday, Yellen acknowledged that “substantial fiscal and monetary stimulus played a role” in feeding high demand, However, she claimed that Biden’s “American Rescue Plan” was responsible for “putting money in people’s pockets, helping them pay their expenses, and contributing to strong demand in the US economy.” In March, President Joe Biden signed the American Recovery and Reinvestment Plan, a $1.9 trillion stimulus package.

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 At around the same time, Yellen emphasised that the ARP was “at best a tiny contributor” to inflation because of its focus on “goods rather than services,” which “has contributed substantially to supply chain difficulties.”

During the Reuters Next conference on Thursday, however, Yellen said that the term “transitory” will no longer be used to characterise the current state of inflation in the economy, conceding that “that hasn’t been an apt description of what we’re dealing with.” Powell has previously made a similar recommendation.

Read More: More Than $1000 in Stimulus Checks Are Expected for Americans

The Biden government has sung its own praises about the Covid-19 recovery, claiming that the United States was the only country whose inhabitants could say they were wealthier than they were before the outbreak. However, figures show that the ultra-rich have reaped the majority of the economic gains since 2020, while a net 21 million average Americans have lost their empl

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