Inflation Hits 30-Year High as Biden’s Economic Adviser Hints It’s Here to Stay
As measures of inflation hit a 30-year high, the Biden White House is abandoning its happy talk that inflation would be a short-term side effect of the economic recovery from COVID-19 restrictions. White House economic…
As measures of inflation hit a 30-year high, the Biden White House is abandoning its happy talk that inflation would be a short-term side effect of the economic recovery from COVID-19 restrictions.
White House economic adviser Jared Bernstein told Fox Business that inflation will endure longer than the Biden administration had been saying.
His current call is that annual inflation will end at about 4 percent this year and drop to 2.3 percent at some point in 2022. However, even Bernstein said there is no clear idea when in 2022 that might happen.
On Friday, the White House announced that the personal consumption expenditure price index climbed 0.4 percent in August for its sixth straight increase.
The inflation figure for the 12 months ending in August put the number up from 4.2 percent to 4.3 percent, the highest rate since 1991, according to MarketWatch.
Economists have abandoned the White House party line that inflation was a minor, temporary blip.
“It’s still quite an inflationary environment going into next year, and that isn’t going to be good for growth,” said Laura Rosner-Warburton, an economist at MacroPolicy Perspectives, according to The New York Times. “They need to be monitoring things very closely. This is a huge shock.”
She said that although