The Biden-Harris regime’s Treasury Secretary Janet Yellen, known for her extremely controversial Wall Street connections that arose in the Robinhood Trading scandal early this year just made headlines again. With a single sentence Secretary Yellen sent the NasDaq Composite into a 2.8% free-fall, the the S&P500 following it down for a 1.36% loss and the Dow dropping .7% costing investors billions of dollars. Yellen since her confirmation has proven that her greatest skill is devastating investor confidence.
Sec. Yellen was speaking to the Future Economy Summit being put on by The Atlantic and her first utterance that shook the markets was when she called for a “reallocation of resources” towards Biden’s $1.9 Trillion spending spree she said,
“It may be that interest rates will have to rise a little bit to make sure our economy doesn’t overheat”
“We’ve gone for way too long letting long-term problems fester in our economy”
Claiming this was justified because “The Additional spending is relatively small relative to the size of the economy.
Yellen’s remarks were centered mainly around the Biden-Harris regime’s unbelievable spending spree and characterizing it as “investments”.
“It was a 1.9 trillion package who got to that number by adding up the things we thought we needed to do to provide relief to state and local governments that had shortfalls, to prevent evictions for renters, for homeowners, to get checks to people, child credit and child-care expenditures. They really want to get through this and get the economy back on track and that is a lot of spending and a short period of time, namely this year and next year.
But while the families plan and a jobs plan to price tags associated with them, these are long-term programs and spread over 8-10 years and in some cases even longer. And so the annual scale of spending is substantially less then we had with the A.R.P. These are investments that we need. Expect them to occur when the economy is back operating at full employment, there’s the spend it down gradually over time and we propose to pay for these.”
Yellen Backpedaling Furiously
As Yellen’s comments to The Atlantic were publicized and reported on the damage to the market began to spread. The Secretary of the Treasury immediately sought to backpedal. Yellen spoke to the Wall Street Journal claiming about an increase in interests rates “that’s not something I’m predicting or recommending.”
“I don’t think there’s going to be an inflationary problem, but if there is the Fed can be counted on to address it,”
Yellen said Tuesday in an interview at The Wall Street Journal’s CEO Council Summit. Federal Reserve Chairman Jerome Powell had attempted to calm concerned investors last week by saying,
“During this time of reopening, we are likely to see some upward pressure on prices,” Mr. Powell said at a press conference following the Fed’s policy meeting last week. “But those pressures are likely to be temporary as they are associated with the reopening process.”
Powell seemed to be responding to the Department of Labor’s consumer price index leaping 2.6% in fiscal 2020 ending in March, compared to a 1.7% increase in February alone.
Since Yellen’s walk-back the DOW has crept into the positives but the NasDaq and S&P 500 have yet to recover.