Janet Yellen, the U.S. Treasury Secretary, contradicted President Joe Biden’s stance on inflation, attributing it to supply and demand rather than corporate greed.
What Happened: Yellen, during a recent interview with CNBC, was asked about the administration’s view on inflation on Thursday. The host referred to Biden’s previous statements on corporate greed driving inflation and asked for Yellen’s perspective.
Yellen responded, “I think that inflation is about supply and demand and clearly a significant part of the inflation we had to burst after the pandemic, during the pandemic reflected supply constraints and stresses on supply chains.”
The host pressed her on whether she agreed with Biden’s “corporate greed” assessment. He asked, “Your boss calls it corporate greed. You don't?”
Yellen then acknowledged a lack of competition in certain sectors, leading to high markups. However, she emphasized that the administration’s antitrust policy aims to promote competition and keep prices in check.
Why It Matters: Yellen’s comments contradict Biden’s recent statements on inflation. In an interview with CNN in May, Biden refuted claims of a weak economy under his administration and blamed ‘corporate greed’ for persistently high inflation. He stated, “We've already turned it around.”
However, recent economic data released in June showed that inflation felt by U.S. producers rose less than expected, and jobless claims soared to their highest level since August 2023. This data, reported by the Labor Department, led to a fall in the U.S. dollar and Treasury yields.
Photo by Alexandros Michailidis on Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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