Treasury Secretary Yellen says consumers shouldn't 'panic' about Christmas present shortages

Treasury Secretary Janet Yellen told CBS News anchor Norah O'Donnell on Tuesday that she believes the higher prices on gas, groceries, and other goods are "transitory," adding she doesn't "mean to suggest that these pressures will disappear in the next month or two." The pandemic-related shifts in consumer habits have helped create "huge bottlenecks in supply chains," leading to hundreds of ships waiting to dock in U.S. ports, she explained. "As the economy adjusts and we get the pandemic under control, the global economy comes back, these pressures will mitigate and, I believe, will go back to normal levels."
"We're being advised now to shop now for the holidays because of these supply chain issues," O'Donnell said. "What's your message to consumers?" Essentially, Yellen advised consumers not to panic. "There may be isolated shortages of goods and services in the coming months," she said, "but there is an ample supply of goods, and I think there's no reason for consumers panic about the absence of goods they're gonna want to acquire at Christmas."
Yellen was less sanguine about the risk to the U.S. and global economies from Congress dithering about raising the debt ceiling. And she said that with 300,000 more women leaving workforce in September, "we're no longer anywhere near the top in terms of women's labor force participation. And when you look at what might be driving that, an important element is child care, paid leave." Yellen also noted that "women have disproportionate burdens for child care" and "schools haven't been operating on a normal schedule," creating "stress for them and additional responsibility."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
How potatoes became an 'unusual bellwether' in Russia's economy
Under The Radarp Spud shortages are pointing to a wider crisis in the nation's finances
-
7 food trails worth zipping along
The Week Recommends Take a bite out of the United States
-
Libraries are feeling the cost burden of e-book popularity
Under the Radar Certain states are working to change laws around e-book purchasing for libraries
-
AMC hopes new ticket discounts will reinvigorate the movie theater industry
In the Spotlight The theater chain now has 50% discounts on both Tuesdays and Wednesdays
-
The FTC is pushing back against false 'Made in the USA' claims
The Explainer The agency has dubbed July 2025 'Made in the USA' month
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Higher toy prices from Trump's tariffs have arrived
In the Spotlight Three out of four toy products in the US come from China
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
'Wrench attacks' are targeting wealthy crypto moguls
The Explainer The attacks are named for physical coercion that can be used to gain crypto passwords
-
Trump is trying to jump-start US manufacturing. Is it worth it?
Today's Big Question The jobs are good. The workers may not be there.
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures