Treasury Secretary Yellen, We Will Have to Put Up With Inflation a While Longer

The Biden administration is desperate to get to June when they can start to cycle through the anniversary of the 2021 inflation spike beginning and start to see annual inflation comparisons level off.  The rate of inflation will drop once the statistical year-over-year comparisons reach the same moment in the prior year.  The fed will raise interest rates in May and then use the June inflation rate decline as a false talking point to highlight how their policy is working.  They wait for May, because they need to wait for the calendar, nothing else.  Inflation is measured as the percentage of change from the prior year.  By waiting until the inflation is measured against the first wave of rising prices, it will give the illusion of a decline in inflation.

That’s the unspoken background behind Janet Yellen’s statements to CNBC where she says, “We’ll have to put up with inflation a while longer.”  It’s all about kicking-the-can until the statistical comparisons lessen, nothing more.

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