Janet Yellen: Tariffs Only Create ‘Modest Influence on Inflation’

ZAKARIA Let me ask ░░░░░░░░ about what I talked ░░░░░░░░ in my opening commentary ░░░░░░░░ does seem the Biden ░░░░░░░░ is acting at cross ░░░░░░░░ It wants to bring ░░░░░░░░ down and yet when ░░░░░░░░ look at the Buy ░░░░░░░░ provisions you look at ░░░░░░░░ tariffs you look at ░░░░░░░░ so many of the ░░░░░░░░ I think I m ░░░░░░░░ President Biden correctly when ░░░░░░░░ said It used to ░░░░░░░░ we look for the ░░░░░░░░ possible place to get ░░░░░░░░ Now we want it ░░░░░░░░ made in America What ░░░░░░░░ doesn t say is ░░░░░░░░ that means at significantly ░░░░░░░░ price Aren t you ░░░░░░░░ t you pursuing policies ░░░░░░░░ inevitably will lead to ░░░░░░░░ structural inflation Yellen Well ░░░░░░░░ may push up prices ░░░░░░░░ little bit but I ░░░░░░░░ when you take a ░░░░░░░░ look at the numbers ░░░░░░░░ s a very modest ░░░░░░░░ on inflation And I ░░░░░░░░ it s critically important ░░░░░░░░ we create jobs in ░░░░░░░░ United States good manufacturing ░░░░░░░░ in industries that is ░░░░░░░░ to be increasingly important ░░░░░░░░ ve had parts of ░░░░░░░░ United States that have ░░░░░░░░ production is hollowed out ░░░░░░░░ partly is a consequence ░░░░░░░░ surging imports from China ░░░░░░░░ the early 2000s after ░░░░░░░░ joined the WTO And ░░░░░░░░ want to engage in ░░░░░░░░ that s mutually beneficial ░░░░░░░░ needs to be a ░░░░░░░░ playing field and China ░░░░░░░░ agreed with us on ░░░░░░░░ And we re concerned ░░░░░░░░ areas where the playing ░░░░░░░░ clearly is not level ░░░░░░░░ is directing massive subsidies ░░░░░░░░ their industrial policy on ░░░░░░░░ ongoing basis And when ░░░░░░░░ demand isn t there ░░░░░░░░ Chinese firms do not ░░░░░░░░ bankrupt as American firms ░░░░░░░░ They stay in the ░░░░░░░░ and that can succeed ░░░░░░░░ depressing prices to the ░░░░░░░░ where very competitive American ░░░░░░░░ can be driven out ░░░░░░░░ business And Europe Japan ░░░░░░░░ other countries feel the ░░░░░░░░