Minneapolis, Minnesota – Treasury Secretary Janet Yellen faced criticism for appearing out of touch with the struggles of everyday Americans amid rising inflation rates under President Joe Biden. In an interview with Yahoo Finance, Yellen addressed concerns about the soaring prices of groceries, which have increased by 20% since before the Covid-19 pandemic.
When asked about her personal experiences with grocery prices, Yellen insisted that she goes to the store every week and claimed not to be surprised by the escalating costs. Despite her estimated net worth of $20 million, Yellen defended the price hikes as a result of cost increases, particularly in labor costs for grocery firms.
During the interview, Yellen was questioned about the potential benefits of investing in agriculture to boost the food supply in the United States. She quickly dismissed the idea, attributing high food prices to various factors, including labor cost increases and possible margin adjustments by grocery companies.
Yellen shared that she met with several grocery store CEOs, including the CEO of Target, who reported efforts to cut costs on essential items like bread, milk, and diapers. While acknowledging such initiatives as positive, Yellen expressed reluctance towards centralizing agriculture as a solution to inflation concerns.
Despite the current inflationary pressures, Yellen expressed optimism that inflation would decrease and reach the Federal Reserve’s target of two percent by early next year. She cited the Biden administration’s recent steps to increase access to affordable housing as a contributing factor to addressing inflation and the high cost of living in the post-pandemic era.
On a visit to Minneapolis, Yellen highlighted the administration’s initiative to allocate $85 million in housing funds to 21 state and local governments. This effort aims to provide more affordable housing options and alleviate financial strains contributing to inflationary conditions. As the government continues to address economic challenges, Yellen remains hopeful for a downward trend in inflation rates in the coming months.