U.S. Treasury Secretary Janet Yellen has addressed the growing concern over rising living costs, acknowledging it as a significant issue for many Americans.
What Happened: Yellen addressed the issue of rising living costs, acknowledging it as a significant problem for many Americans, Financial Times reported on Friday.
Yellen noted that despite recent wage growth, prices for housing and everyday goods remain high. She highlighted the struggles faced by young people trying to enter the housing market due to higher mortgage rates.
Yellen stated, “They see it when they shop for food. They see it in terms of rentals. With higher mortgage rates, it's tough for young people who would like to buy a house to enter the market.”
"The cost of living is a problem to a lot of people," Yellen said.
The comments come as polls show President Joe Biden trailing his Republican rival Donald Trump ahead of the November election. Surveys indicate that voters do not credit Biden with the economy’s strong performance, with inflation being a top concern.
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The consumer price index has risen over 19% since Biden took office, with essentials like food and petrol seeing sharp increases. Data from the Swing State Project showed that 54% of voters believe the cost of living is the best measure of economic strength.
The Federal Reserve is expected to maintain interest rates at a 23-year high, impacting mortgage and borrowing costs. Republicans have criticized Biden’s policies, blaming them for high prices and depicting Democrats as out of touch.
Yellen emphasized the administration’s efforts to reduce costs, including eliminating “junk fees.” She stated, “President Biden understands that and intends to address it as best as he can using the tools that we do have.”
Why It Matters: Yellen’s remarks come after she predicted in April that inflation would normalize this year, but also highlighted concerns over China’s industrial overcapacity. This context adds weight to her current statements on inflation and living costs.
Additionally, a recent report from May revealed that parents are facing increasing financial pressures as prices continue to soar. The article titled “Inflation Hits Home: Parents Face Mounting Financial Pressures As Prices Soar” underscores the real-world impact of inflation on American families.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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