Yellen threw gasoline into ‘inflation fire’: Former White House economist
The Federal Reserve is expected to signal its first interest rate hike in three years
Former Chairman of the Council of Economic Advisers Kevin Hassett joined "Mornings with Maria," Wednesday, arguing that Treasury Secretary Janet Yellen threw gasoline into the "inflation fire" and discussed Yellen rebranding Biden’s economic agenda as "modern supply-side economics."
FED LIKELY TO PAVE THE WAY FOR MARCH RATE HIKE AT KEY MEETING THIS WEEK
KEVIN HASSETT: Well what Janet Yellen did is that she threw gasoline on the inflation fire at Davos because she basically came out and really doubled down on modern monetary economics, arguing that supply-side economics should be modern as well… if you look at the context of what she's saying, she's saying basically it's supply-side economics for the government to spend trillions of your dollars on…infrastructure and giving free daycare to people.
But really, what she's doing is just making another big excuse for Build Back Better and doing something even more aggressive than modern monetary economics to decouple people's expectations about future inflation… so inflation expectations aren't anchored, and without them being anchored by the belief that policymakers won't be stupid, then there's no telling how high they could go, and I think Janet Yellen just really did a disservice to the global economy.
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