Treasury Secretary Janet Yellen on Sunday was asked to explain voter dissatisfaction with the economy under President Biden, despite “positive macroeconomic indicators.”
“The rate of inflation is coming down. Unemployment is low. The economy’s growing. But why is it then that voters seem so unsatisfied?” ABC News’s Jonathan Karl wondered. “And in fact, in poll after poll, voters say they trust Donald Trump with the economy more than Joe Biden. What’s going on?”
Yellen argued Americans were facing tough economic times leading up to the pandemic, which became the tipping point.
“I think the pandemic was a profoundly difficult time,” Yellen said. “But in the years leading up to the pandemic, Americans were really, many of them, working-class families just struggling with things like healthcare costs, the cost of energy, education costs, childcare costs.
“And so they really feel the cost of living,” she continued. “Housing is particularly unaffordable in so many parts of the country. And I think the inflation that we experienced after the pandemic just compounded this feeling for them that life isn’t affordable. So, it is the Biden administration’s top priority to address these costs where we possibly can.”
Karl followed up, however, questioning her on inflation.
“Just to be clear, I mean, the rate of inflation is coming down, but overall inflation is up 19 percent since President Biden took office,” Karl said. “On some everyday goods, it’s much higher. The price of eggs is up 84 percent since President Biden took office; ground beef, up 30 percent; bread, up 27 percent. I mean, by and large, inflation rate may go down, but those prices aren’t returning to where they were. I mean, those prices are going to remain high.”
Yellen acknowledged the price hikes but said "it’s now rising at a very slow, close to normal rate."
Still, the Biden administration "absolutely wants to address" the issue, Yellen added.
"I would point out, of course, that wages have also gone up during this time, and government studies show that, for all — for households at all points in the income distribution — wages have gone up somewhat more than prices. So the typical American is somewhat better off," she claimed.
“It is true that, over the last roughly three years, there's been a significant increase in the price level. It's now rising at a very slow, close to normal rate…I would point out, of course, that wages have also gone up,” Treasury Sec. Yellen says. https://t.co/6V1SSjaHXl pic.twitter.com/S8loYRcFr1
— This Week (@ThisWeekABC) June 16, 2024