The Biden administration has insisted that the sky high inflation our nation is experiencing is only temporary, or “transitory.”
Now, even a former Obama official has called that view hogwash, warning that inflation is anything but “transitory.”
Larry Summers, former Treasury Secretary for President Barack Obama, wrote an op-ed for the Washington Post with this headline: “On inflation, it’s past time for team ‘transitory’ to stand down.”
“Excessive inflation and a sense that it was not being controlled helped elect Richard Nixon and Ronald Reagan, and risks bringing Donald Trump back to power,” he wrote. “While an overheating economy is a relatively good problem to have compared to a pandemic or a financial crisis, it will metastasize and threaten prosperity and public trust unless clearly acknowledged and addressed.”
Republicans have pointed to the latest inflation data, which showed the highest consumer prices in decades.
“The Bureau of Labor Statistics reported that the consumer price index grew by 0.9 percent in October and 6.2 percent over the past 12 months – surging way past expectations,” The Republicans on House Ways and Means said in a statement. “Annualized since Biden’s first month of office, inflation is on track to be 7.4 percent – which is the highest rate since February 1982. With more than 10 million job openings, inflation is still rising and President Biden is holding back our recovery.”
Biden’s several trillion dollars in federal spending will likely add to inflation, experts say.
“According to Moody’s, consumer prices will rise 2.24 percent higher after the Biden infrastructure, American Rescue Plan, and Build Back Better spending than in a Biden-free economy,” the Republicans added. “Inflation is now tied with COVID as Americans’ main concern, and the American people have lost confidence in the President’s competency to heal this economy.”