‘That is deranged’: Janet Yellen says Americans ‘generally are better off’ despite price increases — the internet disagrees

This statement has ignited significant backlash on social media.

Along with sharing the news, the X account for finance newsletter “The Kobeissi Letter” launched a poll to gauge public sentiment, asking, “Are you better off than you were 5 years ago?” As of Thursday, over 8,600 individuals had participated, with 82.1% expressing disagreement by voting "No."

Many users on X expressed their disagreement with Yellen’s statement. For instance, Billy Markus, the creator of cryptocurrency Dogecoin, responded to The Kobeissi Letter’s query about agreeing with Yellen’s comments by stating, “No, that is deranged.”

Another user, Anthony Sandford, labeled Yellen’s perspective as “absolutely out of touch.”

Sandford questioned, “If people are better off then why are people saying they’re going to cut back on eating out, entertainment, clothing, and vacations?” He supported his argument with an infographic from a recent Consumer Confidence Survey that illustrates the areas where consumers intend to reduce spending.

Meanwhile, Keith McCullough, CEO of Hedgeye Risk Management, simply responded to Yellen’s statement with a “LOL.”

Here’s a closer look at the reasoning behind Yellen’s claim.

Yellen: Inflation has come down considerably

During the hearing, Yellen pointed out that inflation “has come down considerably.”

“The measure that the Federal Reserve focuses on most, over the last 12 months, ran at 2.7%,” she explained.

Yellen is referring to the personal consumption expenditures (PCE) price index, which rose 2.7% in March 2024 from a year ago. This is up from a 2.5% annual increase in February but down significantly from its June 2022 peak of 7.1%.