Expert: Calling Inflation ‘Transitory’ Is The ‘Worst Inflation Call’ In History Of The Fed

President Joe Biden is facing backlash after his administration’s claim that current inflation levels are “transitory” is falling apart.

A top economic expert said over the weekend that the Biden administration made a huge mistake.

“The characterization of inflation as transitory is probably the worst inflation call in the history of the Federal Reserve, and it results in a high probability of a policy mistake,” former Pimco CEO and now Queens’ College president Mohamed El-Erian said on “Face the Nation” Sunday. “So, the Fed must quickly, starting this week, regain control of the inflation narrative and regain its own credibility. Otherwise, it will become a driver of higher inflation expectations that feed onto themselves.”

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A new ABC/IPSOS poll released Sunday found that 69% of those surveyed disapprove of how the president has handled the inflation issue.

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This comes after the latest federal inflation data showed the quickest increase in prices the nation has seen in nearly 40 years.

“The all items index rose 6.8 percent for the 12 months ending October, the largest 12-month increase since the period ending June 1982,” the Bureau of Labor Statistics said. “The index for all items less food and energy rose 4.9 percent over the last 12 months, while the energy index rose 33.3 percent over the last year, and the food index increased 6.1 percent. These changes are the largest 12-month increases in at least 13 years in the respective series.”

“The monthly all items seasonally adjusted increase was the result of broad increases in most component indexes, similar to last month,” added. “The indexes for gasoline, shelter, food, used cars and trucks, and new vehicles were among the larger contributors. The energy index rose 3.5 percent in November as the gasoline index increased 6.1 percent and the other major energy component indexes also rose. The food index increased 0.7 percent as the index for food at home rose 0.8 percent.”

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