Janet Yellen Acknowledges: "Cost Of Living Is A Problem" For Consumers

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by Tyler Durden
Friday, May 24, 2024 - 09:20 PM

Americans are quickly realizing, by their empty wallets, that the leftists in the Biden administration are fueling the inflation storm with reckless government spending, amounting to $1 trillion every 100 days. No more blaming 'Putin Price Hikes' - Bidenomics has been one of the great policy mistakes in a generation, as working poor folks are crushed by persistently high inflation, forced to rack up insurmountable credit card debts and drain personal savings, all in a move to pay shelter costs, put food on the table, and service monthly auto payments. 

Commenting on the inflation shitstorm is US Treasury Secretary Janet Yellen. She actually admitted that living costs are a "problem to a lot of people" following "substantial increases" in prices for goods. 

In an interview with the Financial Times on Thursday, Yellen acknowledged that housing and everyday goods prices were still very high for many consumers despite solid wage growth in recent months. 

Great observation, Janet. Let's remind readers that negative real wage growth decimated tens of millions of working-poor consumers in the first few years of Biden's first term.  

It's not just us criticizing Bidenomics. Duquesne Family Office Chairman & CEO Stan Druckenmiller slapped Biden's economic policies with an "F" and warned that the Federal Reserve and federal government "misdiagnosed Covid, mistakenly believing we were heading into a depression."

Druckenmiller spoke with CNBC hosts earlier this month, outlining the problems with the federal government spending like there is no tomorrow, which we outlined last year as a "stealth stimulus" propelling Bidenomics. Meanwhile, Fed chair Jerome Powell has enabled the Bidenomics disaster as the government spends $1 trillion every 100 days.

Plus, analysts at Goldman provide a lot of color on the imploding low-income consumer: 

Back to Yellen, who said, "They see it when they shop for food. They see it in terms of rentals. With higher mortgage rates, it's tough for young people who would like to buy a house to enter the market." 

"Although wages have gone up significantly, and, at least on average, more than prices have gone up, there are substantial increases in prices that are important to people — and it's substantial increases in a relatively short period of time that are very noticeable to people," she said.

Especially with food prices - have yet to come back to Earth.

Yellen continued, "The cost of living is a problem to a lot of people," adding, "So I think this is a concern that people legitimately have." 

It's a little too late, Janet. Americans have been suffering way too long in this inflation storm while the administration officials have ignored these problems. Perhaps that's why polling data (FT-Michigan Ross) shows more Americans prefer Trump on the economy than Biden.