While White House officials have insisted on the temporary status of ongoing inflation rates, the nation’s U.S. Treasury Secretary, Janet Yellen, more recently claimed Americans could endure “uncomfortably high” prices for at least another year. Yellen’s statement accompanies recent poll results that show more than half of Americans disapprove of Biden’s handle on growing costs.
What We Know:
- Inflation rates have surged to the highest we’ve seen since the early ’80s.
- The average national gas price per gallon has set and broken records daily since Russia’s invasion of Ukraine.
- U.S. Treasury Secretary Yellen predicts “uncomfortably high” inflation rates for the next year.
- President Biden’s approval numbers
Uncertainy of Russian Invasion Related to U.S. Inflation
In speaking with CNBC‘s “Closing Bell” on Thursday, Treasury Secretary Janet Yellen attributed current and future inflation rates to the uncertainties related to the Russian/Ukrainian war. She shared with the outlet that record inflation could last “another year.”
Her claim contrasts starkly with Biden and the White House’s insistence that record price hikes are only temporary. Yellen shared the conflict is “exacerbating inflation” and that Americans “are likely to see another year in which 12-month inflation numbers remain very uncomfortably high.”
The European conflict has definitely contributed to current inflation rates. However, the Daily Mail reports most inflationary impacts from the current situation were not recorded in February’s consumer price index. Reports only began to include Russian impact on increasingly costly necessities such as gas in early March.
The Daily Mail also reports that Yellen also shared the Federal Reserve intends to work to reverse increasingly high inflation rates if numbers continue to set and break records. The outlet further shared, however, that inflation within the last year has “way overshot” the reserve’s 2 percent target annual.
Additionally, the national inflation rate hit 7.9% this week, a record unseen since 1982. However, most noteworthy, the specific price hike for energy reached 26.2% within the last year.
Treasury Secretary Yellen’s prediction for the next year proves increasingly daunting for American households. Many families are already spending nearly $300 more per month for necessities alone. The U.S. Labor Department’s latest report showing consumer prices have risen 7.9% within the last year has left many families spending an average extra of $296.45 a month.
To provide perspective, the department reported earlier increases in 2018 and 2019 of just 2.1%.
Did Biden’s Response to Rising Inflation Cause Drop in Approval Ratings?
In contrast to Secretary Yellen’s latest claim regarding rising inflation, Biden’s response, specifically to sky-high costs for fuel, has seen mass disapproval ratings. A recent poll left the Commander in Chief with just a 34% approval rate for his handle on inflation rates, while the overall approval rate reached a marginally higher 42%.
The latest poll puts the upcoming midterm elections at risk on the side of the democratic party, as the Daily Mail reports 45% of Americans believe Republicans boast a better plan for improving the economy.