Treasury Secretary Janet Yellen admitted that she “was wrong” about inflation and that she “didn’t fully understand” supply bottlenecks that have hurt the economy.
During an interview aired on Tuesday’s broadcast of CNN’s “Situation Room,” Treasury Secretary Janet Yellen admitted that she “was wrong” about inflation and that while “unanticipated and large shocks to the economy” are a part of the reason, she also “didn’t fully understand” supply bottlenecks that have hurt the economy.
Yellen reacted to clips of her downplaying the inflation threat in 2021 by stating, “I think I was wrong then about the path that inflation would take. As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices, and supply bottlenecks that have affected our economy badly that I didn’t — at the time, didn’t fully understand. But we recognize that now the Federal Reserve is taking the steps that it needs to take.