Written by Rebecca James.

Treasury Secretary Janet Yellen recently minimized the sharp increase in grocery prices, stating she is not “surprised” by them. During an interview with Yahoo Finance’s Jennifer Schonberger, Yellen was asked if she had noticed the rising grocery prices firsthand.

“I sure have – I go every week,” Yellen responded. When Schonberger inquired if she experiences “sticker shock” due to the high food prices, Yellen, who is estimated to be worth $20 million, replied sharply. She attributed the price hikes to “cost increases, including labor cost increases that grocery firms have experienced,” and suggested there might be some increases in profit margins.

Yellen insisted that inflation is decreasing and predicted it will “go back to the Fed’s 2% target” by early next year. She also mentioned that she has met with several grocery store CEOs to encourage them to lower costs for essential items like bread, milk, and diapers.

Biden Administration’s Stance on Inflation

Yellen is not the only Biden administration official to downplay the effects of inflation. President Joe Biden has also dismissed concerns about rising prices, claiming last month that Americans “have the money to spend.” He denied that his administration’s policies have contributed to inflation, stating, “No president’s had the run we’ve had in terms of creating jobs and bringing down inflation.”

In a May interview with CNN, Biden asserted that inflation was at 9% when he took office and has since dropped to around 3%. However, this claim is misleading. Inflation was actually 1.4% in January 2021 when Biden took office and peaked at 9% in June 2022, more than 16 months into his presidency.

Discrepancies in Inflation Reporting

The discrepancies in inflation reporting have raised questions about the administration’s handling of economic data. While Yellen and Biden emphasize the job creation and economic recovery under their watch, the reality of inflation’s impact on everyday Americans cannot be ignored. The sharp rise in grocery prices has significantly affected households across the country.

Despite Yellen’s assurance that inflation is coming down, many Americans continue to feel the strain of higher prices on their budgets. The Biden administration’s narrative of economic success clashes with the lived experiences of many citizens who struggle to keep up with rising costs.

Our Take

The Biden administration’s dismissive attitude towards inflation and rising grocery prices is concerning. While they tout job creation and economic recovery, the reality for many Americans is far different. The disconnect between the administration’s claims and the actual economic hardships faced by citizens highlights a need for more transparency and effective policies to address inflation. Ignoring the struggles of everyday Americans will only deepen the divide between policymakers and the public.