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U.S. Treasury Secretary Janet Yellen was paid a compliment by Republican Sen. John Kennedy amid a barrage of criticism aimed at President Joe Biden's handling of the economy.
Yellen testified on Thursday before the Senate Committee on Banking, Housing, and Urban Affairs, touting a "historic recovery" driven by the Biden administration through the perils of inflation and other negative economic factors resulting from the COVID-19 pandemic.
The administration's sunny disposition has not been felt by all Americans and demographics, however. Bankruptcies grew by 16 percent for non-businesses in the period ending December 2023, according to the U.S. Courts, which was a stark reversal of a positive trend in that department going back to 2010.
Fewer Americans are reportedly opting to get auto insurance after rates climbed 19 percent in 2023 compared to the year prior—the biggest yearly increase since 1976.
"Madam secretary, I have watched you for years, even before I came to Washington, and when I have time, I do, I enjoy reading your speeches," Kennedy, a senator from Louisiana, told Yellen on Thursday. "I think you're what cool looks like.
"You're a good sport, to go out every day and try to defend Bidenomics. It's like trying to defend a fungal infection."
Yellen, who laughed at Kennedy's statement, disregarded his remark on Bidenomics and said she wouldn't agree with the characterization.
"Bidenomics first tried to address the pain that households were experiencing because of the pandemic, and to help them survive it," Yellen said. "Small businesses, households, people who had lost their jobs—to prevent a kind of scarring we saw after the financial crisis."
All advanced countries experienced it and "no country has done better" in resuming growth and raising wages than the U.S., she added.
In her opening remarks, Yellen celebrated strong Gross Domestic Product (GDP) growth and the decline in inflation, which has resulted in the Federal Reserve stabilizing interest rates in recent months as it aims for 2 percent.
Although inflation has subsided from where it was a year or two ago, the effects of conflicts in the Red Sea involving Iran-backed Houthi rebels has affected maritime trade and could cause additional increases on clothing and appliances.
Renters are also still feeling the burn when compared to four years ago, when rent was 22 percent cheaper than it is today, according to Hannah Jones, a senior economic research analyst at Realtor.com.
About one-quarter of American renters said they can no longer afford to pay their rent, and around one in five said they will have to move back in with parents or friends, per a recent study from Intuit Credit Karma.
J.P. Morgan Research forecasts that global core inflation will hover around 3 percent this year, remaining a big political issue as questions remain regarding elevated prices and tight labor markets.
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About the writer
Nick Mordowanec is a Newsweek investigative reporter based in Michigan. His focus includes U.S. and international politics and policies, immigration, ... Read more