Treasury Secretary Janet Yellen’s Take on Grocery Store Prices

Treasury Secretary Janet Yellen surprised an interviewer when asked if she has personally experienced ‘sticker shock’ at the grocery store due to inflation. While a growing economy could boost confidence in Biden’s leadership ahead of the election, persistent inflation remains a significant issue. Under Biden, grocery prices have increased by double digits, often leaving Americans stunned by the cost of their typical store visits.

Despite her net worth of about $20 million, Yellen stated she shops for groceries ‘every week’ and is not shocked by the prices.

Yellen’s Response to Inflation Impact

“It’s sticker shock, isn’t it? Just when you look at shipping costs, those have come down, global food commodity prices have also come down but food prices still remain high,” commented Yahoo! Finance reporter Jennifer Schonberger. Yellen promptly responded with “No,” interrupting the question. She explained, “I think largely it reflects cost increases, including labor cost increases that grocery firms have experienced, although there may be some increases in margins.”

Yellen believes inflation will decrease, aiming to return to the Fed’s two percent target by early next year.

Biden Administration’s Measures to Tackle Inflation

The Biden administration has announced new initiatives to increase access to affordable housing, addressing the high cost of groceries and other necessities, as well as high interest rates that have raised living costs post-pandemic. During a visit to Minneapolis, Yellen promoted these new investments, including a $100 million fund to support affordable housing financing over the next three years and increased Federal Financing Bank support for affordable housing. She attributed the slow decrease in inflation to housing costs, rather than administration policies.

Inflation’s Influence on Voter Concerns

Inflation and the economy remain top concerns for voters leading up to the 2024 election. Supermarket stores appear to be taking advantage of the middle and lower-middle class, while the wealthy or less informed may not notice. For instance, in South Florida, there is apparent price gouging on items like coffee and air fresheners. Coffee that previously sold for $6.99 is now $12.99, and disinfectant spray that was $6.99 before COVID is now $11.99. Florida has one of the highest inflation rates in the country, yet politicians in the state seem to avoid the issue, opting instead for meetings with lobbyists.