December 3, 2021
Yellen ties end of inflation with 'successful' response to COVID pandemic

Yellen ties end of inflation with ‘successful’ response to COVID pandemic

Treasury Secretary Janet Yellen on Sunday claimed that the end of inflation will rely upon the pandemic and whether or not there’s a “successful” response to COVID-19 by the Biden administration.

In a pre-taped interview with CBS’s “Face the Nation” that aired on Sunday, Yellen was requested whether or not she is assured that the inflation fee shall be again to regular ranges by subsequent November, prompting her to say the “pandemic has been calling the shots for the economy and for inflation.”

“If we want to get inflation down, I think continuing to make progress against the pandemic is the most important thing we can do,” Yellen instructed host Margaret Brennan. “I think it’s – it’s important to realize that the cause of this inflation is the pandemic.”

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Brennan then listed off many grocery objects which can be going through skyrocketing costs, together with milk, eggs and low, in addition to fuel, earlier than asking, “When does it get better? When do those spikes abate?”

“When the economy recovers enough from COVID that demand patterns – people go back to eating out, traveling more, spending more on services, and the demand for products, for goods begins to go back to normal,” Yellen mentioned. “Labor supply has been impacted by the pandemic. Labor force participation is down. It hasn’t recovered.”

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She went on to reiterate that if they’re “successful” with the pandemic response then she expects costs to return to “normal.”

Janet Yellen

Later within the interview, Brennan mentioned China’s leaders had repeatedly called for the Trump-era tariffs on Chinese language merchandise to be lifted and requested Yellen whether or not costs of groceries or merchandise would go down in the event that they adopted by with this.

“It would make some difference,” Yellen mentioned. “Tariffs do tend to raise domestic prices. We put those tariffs in place. President Trump and his administration did in retaliation for unfair trade practices.”

When requested whether or not the tariffs ought to keep in place, Yellen mentioned U.S. Commerce Consultant Katherine Tai was revisiting the phase-one commerce deal and mentioned it’s “certainly something that’s under consideration.”

White Home nationwide financial director Brian Deese appeared on CNN’s “State of the Union” earlier Sunday morning, the place he touted the Democrats’ $1.75 trillion social spending and local weather bundle as the answer for the inflation enhance.

“By providing affordable child care, affordable elder care, we’re going to help get those people back into the workforce, which will reduce price pressures while also reducing the practical costs that Americans face,” Deese mentioned. “That’s the case we’re going to make and that’s the case why delivering right now for the American people is the right thing to do.”

“We’re confident this bill, as it moves through the process, is going to be fully paid for,” he added. “And not only that, it’s actually going to reduce deficits over the long term.”

Fox Information’ Jessica Chasmar contributed to this report. 

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