Janet Yellen, the US Treasury Secretary, has highlighted the detrimental impact of inflation on American families, even though the data indicates a decline in its intensity. The rising costs of living have become a significant concern, particularly as it undermines President Joe Biden’s approval ratings among voters.
Furthermore:
Housing prices, as well as the prices of goods and services, remain high, making life difficult for many Americans. Yellen stressed that while wages have experienced significant growth, the cost of essential items has also surged. This rapid price increase is especially noticeable and burdensome for individuals, according to Yellen.
Americans are grappling with the high cost of living on a daily basis, whether it be when they go grocery shopping or pay their rent. Inflation’s impact is undeniable, as grocery bills have increased and rental costs have skyrocketed. The situation is further complicated by higher mortgage rates, especially for young people who aspire to own homes. Yellen expressed concern about the disparity between wage growth and the rising cost of living.
Despite wages increasing more than average prices, Yellen acknowledges that the substantial price hikes within a short period are troubling for many individuals. These increases have a direct impact on daily life, making it challenging to keep up with expenses even with higher earnings. Yellen emphasized that the inflation challenge goes beyond the Federal Reserve’s numbers; it is about the tangible impact on people’s lives.
Meanwhile, as the US economy becomes increasingly unpredictable and the US dollar continues to lose ground to currencies like the Chinese yuan, GBP, and Japanese yen, the crypto markets are thriving.
In just five months of this year, we have witnessed several significant milestones in the industry. Bitcoin has broken not one, but two, all-time highs. The US Securities and Exchange Commission (SEC) has approved Ethereum and Bitcoin spot exchange-traded funds (ETFs), and crypto enthusiasts are riding the wave. A survey conducted by Chainalysis reveals that an increasing number of Americans are entering the crypto market.
Additionally:
The US House of Representatives recently passed a crypto regulation bill that focuses on the market and establishes a clear distinction between the Commodity Futures Trading Commission (CFTC) and the SEC’s jurisdiction. Interestingly, in 2022, Janet Yellen attributed the suffering of Americans’ finances to crypto. She also expressed concerns about the potential broader financial stability risks arising from further integration between the traditional financial system and crypto markets.
Janet Yellen has never been a strong supporter of cryptocurrencies. In 2021, she questioned their legitimacy as stable stores of value, citing their volatility and speculative nature. She has also criticized the hype surrounding them, claiming that most investor gains were artificially inflated to deceive unsuspecting Americans.
Seven years ago, during a Congressional testimony, an intern made headlines by holding up a sign that read, “Buy Bitcoin” while standing behind Yellen. At that time, one BTC was valued at $2,300. Currently, it is worth $68,273. Interestingly, the sign was recently sold at an auction for over $1 million, while the US dollar is still struggling to recover from the losses it incurred in 2023.
Source: Bloomberg
Reported by Jai Hamid for Cryptopolitan
