As rising inflation threatens the president Joe BidenThe agenda and the Democratic Party Congress, Financial Secretary Janet Yellen It was stated on Sunday that if the pandemic eases, prices will only fall before the 2022 midterm elections.
Yellen said: “It is important to realize that the cause of this inflation is a pandemic.” CBS‘ Face the country Sunday. “The pandemic has been calling the shots for the economy and inflation. If we want to reduce inflation, I think continuing to make progress in fighting the pandemic is the most important thing we can do.”
When asked whether the average American price will fall by November next year, Yellen linked the economic recovery to COVID-19.
“It really depends on the pandemic,” she said. “When the economy recovers from COVID to a sufficient degree, demand patterns, people will return to eating out, more travel, more spending on services, and demand for products and goods begin to return to normal.”
The shortage of workers increased the annual wage growth rate in October to 4.9%. However, this growth was overshadowed by the pace of inflation, leading to an overall decline in real earnings and purchasing power in most industries.
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Yellen acknowledged that the country has been seeing “a sharp increase in prices” due to “a sharp increase in demand for products.”
According to a report released by the Department of Labor, the consumer price index rose to more than 6% last month, the highest level in more than 20 years.
After months of defensive remarks about rising inflation, the White House changed its way of transmitting information, frankly admitting that worsening economic problems have cursed Biden’s presidency.
On Sunday, Brian Deese, director of the White House’s National Economic Council, cited high inflation as the reason for pushing nearly $2 trillion in social spending and the passage of the climate bill to Congress.
“This bill actually aims to address the core costs faced by American families in childcare, housing and medical care,” he said. ABCof this week.
Deese responded to Yellen, linking the economic recovery to the country’s COVID-19 response. “We have to finish work on COVID. We know that the more people feel comfortable entering the economy, watching movies instead of buying TV at home, and working in the workplace, the more we can return to normal life in our economy,” he said.
The recent polls paint a disturbing picture for Biden because Democratic Party Face an uphill battle to maintain control of their weak congressional majority.
70% of Americans say that the economy is in a poor state, and 55% disagree with the president’s handling of the economy in the new ABC news——Washington post Polls.
Weekly newspaper Contact the White House for further comment.
