WELL, THAT’S EXACTLY WHAT SHE’S DOING: ‘My Mama Didn’t Raise A Fool’: John Kennedy Accuses Janet Yellen Of Giving Economy ‘Sugar High’ To Help Biden Win.
“Because of the inverted yield curve, that means that you’re gonna pay more in interest on short-term debt than say 10-year debt,” the senator said. “Now that’s a fact. You can go check the numbers of Treasuries yesterday. First, that costs taxpayers a lot more money in the interest. And number two, you’re working at cross purposes with the Federal Reserve because what you’re doing is stimulating the market. You’re pumping money into the economy and Jay Powell’s over here beavering away trying to reduce inflation. And you’re beavering away trying to increase it.”
Yellen appeared to begin to dispute Kennedy’s claims but he continued, talking over her.
“By paying an interest rate that is 100 basis points higher than you would have to pay,” he said. “And the only reason I can figure that y’all are doing that is, is to try to give the economy a sugar high five months before an election. Why else would anybody want to borrow at 5% when you can borrow at 4%?”
I’d just add that wages still haven’t caught up with Bidenflation and that despite the low unemployment rate, we still have fewer full-time jobs (and a lower labor participation rate) than we did in 2019.
For all of Yellen’s sugar high, to mix metaphors, the Biden recovery is mostly smoke and mirrors.