U.S. Treasury Secretary Janet Yellen attended the Clinton Global Initiative Summit at the Hilton Midtown Hotel. She addressed the “disconnect” between the current performance of the U.S. economy and Americans’ perception of President Joe Biden’s response. In an interview on MSNBC’s “Morning Joe,” Yellen stated that negative opinions about the economy primarily reflect people’s views on the overall state of the economy. However, she expressed optimism that once the effects of the Biden administration’s bills and policies are seen, people will have a more positive outlook. Yellen emphasized that the administration has passed three pieces of legislation and is investing in America in a way that hasn’t been done in decades.
However, a Wall Street Journal poll revealed disapproval of Biden’s handling of the economy among registered voters, with 63% expressing dissatisfaction with his management of inflation. While previous polls showed lower approval ratings specifically regarding Biden’s handling of the economy, overall job performance ratings were slightly higher, according to the Associated Press-NORC poll. These poll results pose a challenge for Biden as he seeks re-election next year.
BBC News special correspondent Kati Kaye pushed Yellen to address the perceived disconnect between falling inflation and unemployment rates. Yellen acknowledged the disconnect but admitted that there is no simple, convincing answer to explain it. She pointed out that American families, children, and households have been significantly impacted by the pandemic, despite the remarkable recovery.
Yellen remains hopeful that the combination of slowing inflation and increasing employment will drive the post-pandemic recovery. She highlighted the partisan Infrastructure Act, the CHIPS and Science Act, and the Control Inflation Act as measures designed to promote substantial infrastructure development. The Biden administration has already announced and implemented $500 billion worth of manufacturing investments, creating valuable manufacturing jobs across the country, especially in areas that have experienced long-term wage declines.