Yellen is avoiding the lessons learned from the wrong inflation: inflation has fallen

0

During an interview with WBUR’s “Here and Now” on Thursday, Treasury Secretary Janet Yellen responded to a question about the lessons she learned for the future from the Biden administration, inaccurately describing inflation as transitory by saying that ‘Inflation has fallen’ and we are having a soft landing.

Co-host Scott Tong asked: [relevant exchange begins around 7:20] “You have acknowledged that the Biden administration and the Federal Reserve were wrong when they suggested that inflation would be transitory, transitory. It wasn’t, and I still remember a business professor using this phrase: Companies can get the value out of failure, they can learn from a setback. What have you learned for future policy about inflation and what happened?”

Yellen responded, “Well, inflation – first of all, inflation has gone down. I think the word transient gives many people the impression that it is something that is a matter of days or weeks. And in our economy this took well over a year. So I regret using the word transient. But inflation has fallen very substantially. The labor market functions well. We have had 23 months in a row – and this is the first time in over 50 years – where unemployment has remained below 4%. If you look at the last six months where inflation has fallen, you get a better idea of ​​where we are now and inflation is now down to 2%. So I have to say that it is very rare that there is a period where inflation is falling and the economy is not going through a recession, but we have not seen that yet. And in that sense I consider this a soft landing.”

To follow Ian Hanchett on Twitter @Ian Hanchett

DISCLAIMER:- Denial of responsibility! www.csnews-live.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email at loginhelponline@gmail.com The content will be deleted within 24 hours.

Read original article here

Leave A Reply