Treasury Secretary Janet Yellen said Wednesday that the stimulus spending signed into law by President Joe Biden to aid the U.S. recovery from the Covid-19 pandemic may have contributed "a little bit" to the country's subsequent inflation woes.
Supply-Side Phenomenon
Yellen explained that the widespread rise in prices during Biden's administration was mostly "a supply-side phenomenon" caused by the pandemic itself. She mentioned that there were "simply huge supply chain problems" leading to shortages of critical goods and pushing up prices significantly.
Necessary Spending
Yellen defended the $1.9 trillion Covid relief bill and other spending, emphasizing that it was necessary to address the severe impact of the pandemic. Despite being asked if she had any regrets about the spending, Yellen stressed the importance of alleviating the suffering caused by the pandemic when Biden took office.
Smooth Transition
With the upcoming transition to a new Treasury Secretary, Yellen expressed confidence in Scott Bessent, the hedge fund executive chosen by President-elect Donald Trump. She highlighted Bessent's market experience as a valuable asset for managing the nation's financial security.
Janet Yellen, inflation, stimulus spending, Covid-19 pandemic, supply chain problems, Treasury Secretary
