\n<\/p>\n
Treasury Secretary Janet Yellen acknowledged that the price levels of many goods in the United States are likely to remain high for the foreseeable future but argued that it isn\u2019t President Joe Biden\u2019s fault. Her remarks came during her appearance before the Senate Banking Committee on Thursday for a hearing addressing the financial stability of the U.S. economy.\u00a0<\/p>\n
Senator John Kennedy (R-LA) pressed Secretary Yellen on whether Americans should expect a decrease in prices anytime soon. The Louisiana Republican directly asked Biden\u2019s Treasury Secretary: \u201cThese high prices, caused by \u2018Bidenomics,\u2019 are here to stay \u2013 aren\u2019t they?\u201d<\/p>\n
\u201cWell, the high prices were not caused by \u2018Bidenomics,’\u201d responded Secretary Yellen, before attempting to shift the blame for inflation: \u201cWe suffered a pandemic that resulted in severe dislocations.\u201d Cutting through the spin, Sen. Kennedy again pressed Yellen on whether prices would fall, asking: \u201cBut if I could ask you, they\u2019re here to stay, aren\u2019t they?\u201d Responding to Kennedy, Secretary Yellen admitted she does not expect the level of prices to go down.<\/p>\n
The Biden administration has struggled to control inflation\u2019s effects on the U.S. economy and its impact on American consumers. After taking office, President Biden pushed several large spending bills through Congress, including the American Rescue Plan \u2013 a $1.9 trillion \u2018stimulus\u2019 bill passed by Congress in March of 2021 intended to speed up the economic recovery from the COVID-19 pandemic.\u00a0<\/p>\n
In the months after the stimulus bill was signed into law, the U.S. experienced what initially appeared to be only a gradual increase in the rate of inflation \u2014 with the rate rising from 2.6 percent in February to 5 percent in May and remaining around that number for several months. As the stimulus took effect, however, the inflation rate rapidly increased, jumping from 5.4 percent in September 2021 to 9.1 in June 2022.<\/p>\n<\/div>\n<\/div>\n