Secretary Yellen Looks to Be Wrong Again

Yellen’s forecasts in the past have proven to be very wrong.

Treasury Secretary Janet Yellen recently talked about the progress that the Biden administration and the Federal Reserve have made toward reducing the inflation problem that has existed since Biden was sworn into office. She predicted what would happen economically in the near future.

It looks like this prediction will be as far wrong as many she has made since becoming Treasury Secretary.

In early 2021 when the inflation rate was beginning to escalate from the 1.4% rate recorded at the end of the Trump administration, she said that inflation was “not a problem” and was “manageable.”

That turned out to be very wrong as the Consumer Price Index reached 9.1% in June 2022. At that time, Yellen admitted she was wrong, blaming “large shocks to the economy that boosted energy and food prices.”

That’s not exactly genuine. The core rate, which excludes changes to food and energy prices exceeded 5% in June 2022, and, in fact, has remained in the 4% to 5% range even today.

Yellen was also not correct when she said that Congress should remove the debt ceiling. That would allow the public debt to rise to even higher levels than the $33.6 trillion where it is today. This huge debt — which removes…