President Joe Biden and his administration have sought to downplay or dismiss concerns about price inflation as being, at worst, a temporary and short-lived phenomenon that had nothing whatsoever to do with the president’s spending policies and would be back to normal by the summer.
Treasury Secretary Janey Yellen admitted Thursday that the “rapid inflation” American consumers were enduring wasn’t as short-lived as initially claimed and would instead persist for at least “several more months,” The Daily Wire reported.
That acknowledgment came amid reports of price inflation that had reached highs in various metrics not seen in 10 or more years, and concurs with warnings from other economists that inflated prices — driven by excessive government spending — could stick around for quite some time.
Yellen predicts “several more months of rapid inflation”
Sec. Yellen’s admission came during an interview with CNBC, which reported that the consumer price index had risen 5.4 percent over the past year. Even using a metric that excludes the volatile prices of food and gas, price inflation has risen 4.5 percent over last year, and a gauge measuring prices for goods and services had increased as much as 7.3 percent in a year’s time.
“We will have several more months of rapid inflation,” Yellen told the network in the interview. “So I’m not saying that this is a one-month phenomenon. But I think over the medium term, we’ll see inflation decline back toward normal levels. But, of course, we have to keep a careful eye on it.”
“Measures of inflation expectations I think still look quite well contained over the medium term,” she added in an effort to remain positive. “Those expectations are actually a driver of price-setting behavior. And so it is important that we monitor it carefully. But I believe fundamentally, you know, that this is something that will settle down.”
Except, The Wall Street Journal reported that other economists surveyed by the newspaper aren’t quite as optimistic as Sec. Yellen, as they tend to believe the inflated prices for businesses and consumers will stick around for several more years to come, not months.
The Daily Wire noted that some elected Democrats, who until now had been parroting the “nothing to see here” narrative from the White House, are now finally admitting to their constituents that, yes, their eyes and lighter wallets are not deceiving them following a visit to a gas station or grocery store, and, yes, everybody is paying more than they used to just a few months ago.
Biden and Democrats “adding gasoline” via more spending to a flaming economy
Of course, arguably the most infuriating thing about the whole situation –aside from the blatant dishonesty of the White House in initially denying or downplaying the soaring prices — is that this sort of inflation was entirely predictable and had been explicitly warned about, even from liberal economists who otherwise support President Biden’s agenda.
Larry Summers, a former top economist for both Presidents Bill Clinton and Barack Obama, called out the excessive spending of both Biden and the Democrat-controlled Congress and warned of surging inflation during an interview with PBS‘ “Firing Line” host Margaret Hoover in June.
Summers pointed out that while the economy may have been short by about $20-30 billion per month at the start of the year, Biden and Congress had responded by pumping $200 billion per month into the economy, and said, “when you take a hole and you overfill it, you’re likely to have problems.”
He went on to assert that the post-pandemic recovering economy was in danger of “overheating” and, using the booming “housing market on fire” as an example, accused Biden and Democrats of “adding gasoline” via more governmental interventions and spending — which, unfortunately, show no signs of slacking and is likely to be increased even further, making the inflation problem that much worse.