US Treasury Secretary Janet Yellen does not believe the inflationary pressures stem from the stimulus policies put in place after the Covid-19 outbreak. Speaking to lawmakers Wednesday during the House Ways and Means Committee, Republicans criticized Yellen for not knowing about the risks of inflation. A US Senator from Wyoming questioned the Treasury Secretary’s “pronouncements and decisions” on record gas prices and rising inflation.

Yellen claims stimulus has ‘created excellent rewards for Americans’ – Republican senator says US bailout has ‘overheated economy’

On Wednesday, Treasury Secretary Janet Yellen downplayed the theory that US bailout stimulus and other monetary expansionary measures have been a major contributor to currently rising inflation. “The success of the policies that have been adopted is that we have an economy with the strongest labor market, arguably in all of the post-war period,” Yellen remarked during her statements to the House Ways and Means Committee. She added that the spending “brought excellent rewards to Americans and contributed modestly at most to inflation.”

Yellen downplays stimulus contributing to inflation, Republicans grill US Treasury Secretary's decisions
Speaking of the American Rescue Plan’s stimulus law, Yellen said, “I hate to think about what the situation — especially for low-income families — would be like without the help of this plan.”

Americans are now more concerned about the hot inflation plaguing the US economy than about the ban on “assault weapons,” according to a June 3-6 poll by Quinnipiac University. Despite the Treasury Secretary’s comment, Republicans like Wyoming Senator John Barrasso appear unconvinced by Yellen’s opinion. “Is there a risk of inflation? They responded, ‘I think there’s a little risk,'” Barrasso told Yellen on Wednesday. Barrasso added:

In view of this, I wonder why Americans should trust your statements, decisions and recommendations today at all.

John Thune, a Republican senator from South Dakota, believes the trillions spent on the stimulus programs caused the inflation problems America is facing. “I think there’s no question that last year’s $2 trillion bill overheated the economy and that’s why we have the mess we have today,” Thune stated during the House Ways and Means Committee. Republican Senator from Illinois Darin LaHood said he was puzzled by the Biden administration’s lack of legal remedies. LaHood explained:

In a lot of ways, as I’ve been listening to you here today and looking at what hasn’t been done by this government, it’s really confusing as to whether the government is deaf or unaware or just becoming aware right now.

Biden says Americans are “financially comfortable” as his administration is accused of fueling power-hungry politicians

Most recently, American President Joe Biden told the US public that “families have less debt” and “their average savings have increased” since he became president. However, statistics from the US Bureau of Economic Analysis (BEA) show that American savings have fallen to levels not seen since 2008.

American television presenter Tucker Carlson opined after Yellen’s first day of testimony Tuesday that the US Treasury Secretary’s “reckless, loose monetary policy caused inflation.” The Fox News anchor said Yellen’s monetary policy is typical of bureaucrats seeking more power.

“Within a year, Yellen had all but abandoned traditional monetary policy restraints,” Carlson said. “Instead, she publicly whined about things like racial justice and environmental justice. Well, these are topics that, unlike economics, cannot be quantified or even specifically defined. They are therefore perfect vehicles for power-hungry politicians hoping to become more powerful.”

Yellen stressed during her testimony that the White House is focused on bringing inflation back to pre-pandemic levels and that tackling inflationary pressures is “the government’s top priority.” A Treasury Department official backed Yellen’s comments, noting that “the unprecedented strength of America’s recovery is enabling our country to address global challenges such as inflation and Russia’s attack on Ukraine from a position of strength.”

tags in this story

Bureau of Economic Analysis, Darin LaHood, Hot Inflation, House Ways and Means Committee, Inflation, Inflationary Pressures, Janet Yellen, Joe Biden, John Barrasso, John Thune, South Dakota, Tucker Carlson, US Treasury Secretary, US Economy, US Inflation , Yellen

What do you think of Janet Yellen’s comment on Wednesday when she testified before the House Ways and Means Committee? Let us know what you think about this topic in the comment section below.

Jamie Redman

Jamie Redman is the news director at News and a Florida-based financial technology journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for News about today’s emerging disruptive protocols.

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