Treasury Secretary Janet Yellen spooked markets this month when she said interest rates could rise if the economy heated up too much — then clarified a few hours later that it wasn’t a prediction. President Joe Biden held a press conference to discuss a disappointing jobs report, then circled back three days later to address the issue again, suggesting to some that he was concerned about public reaction. And the president has called for his multi-trillion-dollar infrastructure package to be paid for with tax hikes, which indicates that he’s worried about too much spending even as the administration downplays both inflation and deficit fears.
The inconsistent messages the administration is sending on economic policy have drawn angst from some political allies, who say it muddles the argument for their agenda.