Janet Yellen, the US Treasury Secretary, has pointed out the severe impact of inflation on American families, even as the numbers show it cooling off. Rising living costs have become a major issue, especially because it undermines President Joe Biden’s approval ratings with voters.
Also Read: Federal Reserve Is Struggling To Make Sense of U.S. Inflation
Housing prices, as well as goods and services, remain high, making life hard for many Americans. Yellen emphasized that while wages have grown significantly, the cost of essential items has also surged. This rapid increase in prices is particularly noticeable and burdensome for people, Yellen added.
Americans Struggle With Cost of Living
When Americans go shopping for food or pay their rent, the effect of inflation is undeniable. Grocery bills are higher, and rental costs have soared. Higher mortgage rates further complicate the situation, especially for young people who aspire to own homes. Yellen said she is concerned about the disconnect between wage growth and the rising cost of living.
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.
Janet Yellen
Although wages have increased more than average prices, Yellen acknowledges that the substantial price hikes in a short period are troubling for many. These increases affect daily life, making it hard to keep up with expenses despite earning more. The inflation challenge is not just about the Fed’s numbers, it’s about the real impact on people’s lives, said Yellen.
US Economy Struggles as Crypto Market Blasts Off
Meanwhile, as the US economy becomes more of an untamable beast and the US dollar keeps losing ground to currencies like the Chinese yuan, GBP, and Japanese yen, crypto markets have never been better.
We have seen numerous significant industry achievements within just five months of the year. Bitcoin has broken not one but two all-time highs. The US SEC has approved Ethereum and Bitcoin spot ETFs, and crypto bulls are riding the waves. According to a survey by Chainalysis, more and more Americans are continuing to enter the market.
Also Read: U.S. House Approves FIT21 Crypto Bill
The US House of Representatives also just passed a crypto regulation bill that focuses on the market and establishes a clear distinction between the CFTC’s and the SEC’s purview. Interestingly, in 2022, Janet Yellen said crypto was the reason Americans’ finances are suffering. She added that “Further interconnections of the traditional financial system and crypto markets could raise broader financial stability concerns.”
Yellen Has Never Liked Crypto
Janet Yellen has never been crypto’s biggest fan. In 2021, she questioned the legitimacy of cryptocurrencies as a stable store of value, citing their volatility and speculative nature. She has also criticized the hype around them, saying that most investor gains were downright “faked” to rope in innocent Americans.
Seven years ago, in what is generally agreed to be a historic moment for the industry, an intern held up a sign that read, “Buy Bitcoin,” as he stood behind Yellen during a Congressional testimony. At the time, one BTC was worth $2,300. At press time, it was worth $68,273. As for the sign, it was sold last month for over $1 million at an auction, while the US dollar is still struggling to recover from the losses it made in 2023.
Cryptopolitan reporting by Jai Hamid
