WASHINGTON — Treasury Secretary Janet Yellen pointed to the consistently higher prices that Americans wage for nutrient and rent today, compared with pre-pandemic levels, arsenic a large origin driving voters' antagonistic outlook connected the economy.
"Although prices successful wide are rising little quickly, Americans inactive spot increases successful immoderate important prices, including food, from wherever we were anterior to the pandemic. And this remains notable to radical who spell to the store and shop," Yellen said connected CNBC's Squawk Box Monday.
As wide ostentation rates person travel down implicit the past year, nutrient prices person consistently outpaced baseline inflation, according to the Bureau of Labor Statistics. There are tons of reasons for this, ranging from the warfare successful Ukraine's interaction connected atom prices to restaurants charging higher prices for paper items.
Rent terms ostentation besides remains stubbornly high. "Rents are rising little rapidly now, but are surely higher than they were earlier the pandemic," said Yellen.
"So I bash deliberation we're making sizeable advancement successful bringing ostentation down. But Americans bash announcement higher prices from what they utilized to beryllium accustomed to," she added.
As President Joe Biden runs for reelection, this disparity betwixt what the Biden medication sees arsenic "considerable progress" and what voters spot successful their monthly household expenses is shaping up to beryllium 1 of the strongest headwinds Biden faces.
Nearly 60% of registered voters disapprove of Biden's handling of the economy, portion lone 38% approve, according to the astir caller NBC News poll, released Sunday.
The numbers were successful enactment with different polls that amusement ample majorities of voters would complaint the contiguous U.S. economy arsenic mediocre oregon fair, contempt historic levels of occupation growth.
"You spot each these high-level header numbers, and those numbers don't jibe with your economical reality," Elizabeth Crofoot, elder economist astatine labour analytics steadfast Lightcast, recently told CNBC's Jeff Cox. "I don't cognize if there's a close oregon wrong, it's conscionable people's reality."
Sunday's NBC News canvass besides showed, for the archetypal time, Biden trailing erstwhile president Donald Trump successful a hypothetical 2024 statesmanlike matchup.
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So far, the White House and the Biden run person stuck to a publication explaining to voters that the U.S. system is objectively strong, dubbing it "Bidenomics," and sending the president crossed the state to tout his administration's economical achievements.
Yellen stuck to this maneuver connected Monday, telling CNBC, "It's our occupation to explicate to Americans what President Biden has done to amended the economy. I deliberation arsenic ostentation comes down, prices halt rising, and the labour marketplace remains strong. Americans volition statesman to spot that we person made meaningful progress."
Whether millions of voters volition admit this advancement betwixt present and November of adjacent twelvemonth is anybody's guess. But it could marque the quality betwixt Biden serving 1 word arsenic president, oregon two.