Ex-Top Obama Economic Adviser Says Biden Admin ‘Behind the Curve’ in Predictions About Inflation
A former top economic adviser to former President Barack Obama suggested the Biden administration “has to be thinking about inflation.” During an interview with CNN Wednesday night, Larry Summers noted the Biden…
A former top economic adviser to former President Barack Obama suggested the Biden administration “has to be thinking about Inflation.”
During an interview with CNN Wednesday night, Larry Summers noted the Biden administration’s “budget and the administration’s forecast with this stimulus was that this year we’d have 2% Inflation. And it’s likely to come in three times that.”
The economist continued, “I think they’re just not recognizing just how much demand is being created by the tremendous wall of money.”
Summers explained the “policymakers in Washington unfortunately have almost every month been behind the curve.”
He added, “They said it was transitory, it doesn’t look so transitory. They said it was due to a few specific factors, doesn’t look to be a few specific factors. They said when September came and people went back to school, that then labor force would grow, and it didn’t happen.”
Summers said his experience is “that you should hope for the best and plan for something much less than the best. I think that means stronger actions by the Fed, it means the administration has to be thinking about Inflation.”