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Wednesday, 01 June 2022 14:16

U.S. Treasury Secretary Says She Was Wrong About Inflation

Written by Richie Malouf, The Center Square

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U.S. Treasury Secretary Janet Yellen admitted she was wrong and underestimated inflation, which continues to soar.

During an interview with CNN's Wolf Blitzer on May 31, Yellen said she failed to anticipate inflation would become such a significant problem.

 

"I think I was wrong then about the path that inflation would take," she said, referencing a statement she made at the Wall Street Journal's CEO Summit in May of last year.

 

"I don't think there's going to be an inflationary problem," Yellen said at the time. "But if there is, the Fed will be counted on to address it."

 

Yellen's concession comes as Americans face record high gas prices with a national average of $4.67 per gallon of unleaded gas as of June 1, according to AAA. That average rose every day the same week. Food prices have risen by 9.4% since April of last year, according to the U.S. Department of Agriculture.

 

Yellen defended her previous comments during the CNN interview, though, saying, "there have been unanticipated and large shocks to the economy that have boosted energy and food prices, and supply bottlenecks that have affected our economy badly, that, I didn't at the time, didn't fully understand, but we recognize that now."

 

We thank The Center Square for reprint permission.