Yellen on Economic Pessimism: People ‘Getting Ahead’ But They ‘Remember’ ‘Prices Were Lower’ and COVID Hurt

During an interview aired on Wednesday’s “PBS NewsHour,” Treasury Secretary Janet Yellen responded to a question on economic pessimism among Americans by saying that “The pandemic had very significant and lasting impacts…on their lifestyles and attitudes.” And because “some prices that are important to so many Americans” like rent, electricity, and food “are higher than they were before the pandemic” and even though people “are getting ahead” they also “remember that prices were lower. And we’re trying to do everything we can to bring down healthcare costs and other costs that are definite strains on Americans’ budgets.”

Co-host Amna Nawaz asked, “Let me ask you about some of the strong economic indicators we do see right now in the U.S. Unemployment is at its lowest levels in about 50 years. Inflation has been coming down, is now around 3%. The U.S. economy has been outperforming many others. But, still, as you know, Americans are still down on the economy. Consumer confidence fell again in February. How do you view that pessimism among Americans right now? What do you think is behind that?”

Yellen responded, “Well, Americans lived through a lot. The pandemic had very significant and lasting impacts, I think, on their lifestyles and attitudes. Importantly, although inflation has come way down, some prices that are important to so many Americans, like the cost of rent or — and the cost of electricity, food, they’re higher than — those costs are higher than they were before the pandemic. And now, wages are rising more rapidly than prices. So, Americans are getting ahead. But, nevertheless, people remember that prices were lower. And we’re trying to do everything we can to bring down healthcare costs and other costs that are definite strains on Americans’ budgets.”