Janet Yellen, the US Treasury Secretary, has highlighted the significant impact of inflation on American households, despite signs of it cooling down. The rising cost of living has emerged as a major concern, particularly as it undermines President Joe Biden’s approval ratings among voters.
The burden of inflated living expenses is being felt by many Americans, with housing prices, goods, and services remaining high. Yellen emphasized that while wages have increased significantly, the cost of essential items has also surged. This rapid price escalation is especially noticeable and burdensome for individuals, she added.
The struggle with the cost of living is evident when Americans go grocery shopping or pay their rent. Grocery bills have risen, and rental costs have skyrocketed. Additionally, higher mortgage rates further complicate the situation, particularly for young individuals aspiring to own homes. Yellen expressed her concern about the disconnect between wage growth and the escalating 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. These increases have a direct effect on daily life, making it challenging to keep up with expenses despite earning more. Yellen stated that the inflation challenge extends beyond the Federal Reserve’s numbers and has a real impact on people’s lives.
Meanwhile, as the US economy becomes increasingly uncontrollable and the US dollar continues to lose ground to currencies like the Chinese yuan, GBP, and Japanese yen, the crypto markets are thriving.
Within just five months of the year, we have witnessed numerous significant accomplishments in the industry. Bitcoin has not only broken 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. According to a Chainalysis survey, more and more Americans are entering the market.
Furthermore, 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 mentioned that “Further interconnections of the traditional financial system and crypto markets could raise broader financial stability concerns.”
It is well-known that Janet Yellen has never been a fan of crypto. In 2021, she questioned the legitimacy of cryptocurrencies as a stable store of value, citing their volatility and speculative nature. She has also criticized the hype surrounding them, stating that most investor gains were simply fabricated to deceive unsuspecting Americans.
In a historic moment for the industry seven years ago, an intern held up a sign that said “Buy Bitcoin” while standing behind Yellen during a Congressional testimony. At that time, one BTC was valued at $2,300. Currently, it is worth $68,273. 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 suffered in 2023.
Source: Bloomberg
Reporting by Jai Hamid for Cryptopolitan