Inflation has continued to drive up the prices of goods and services in America as the purchasing power of the US dollar is not what it used to be. Meanwhile, former Obama administration economic adviser Larry Summers recently told reporters that “we’re going to see inflation of a kind that we haven’t seen in 30 years.” Despite the gloomy predictions, the White House does not believe these predictions and US Treasury Secretary Janet Yellen attributes inflation to the Covid pandemic.
Former Obama economic adviser predicts searing inflation will rise – White House rejects ideas infrastructure funds will keep inflation down
Americans are spending more and more dollars on gasoline, rent, houses, food, health care supplies, drugs, vehicles and more, since the US government increased the money supply like at no other time in history. President Joe Biden appears to think the trillion dollar infrastructure bill will help dampen inflation, even though economists doubt that prediction. Talk to CNNLarry Summers, the US economist who served as the 71st Secretary of the Treasury of the United States, said, “We are going to see inflation of a kind that we have not seen in 30 years.
NBC’s Peter Alexander: “Americans are seeing their dollars, their paychecks stretched right now. Why shouldn’t Americans worry that injecting an additional $ 1.57 trillion or more will raise inflation?
Psaki: “B / c no economist predicts that[.]”
Uh, the fuck? pic.twitter.com/Cz4vcguSvs
– Curtis Houck (@CurtisHouck) November 15, 2021
However, when White House press secretary Jen Psaki was asked about the spike in inflation by an NBC reporter who kept pushing her, the secretary dismissed those predictions. Fox News contributor Joe Concha mocked the press secretary’s comment on Twitter and noted: “There are too many economists to count who say billions in new spending will only increase inflation further. These Psaki bombs are more than funny at this point, ”Concha added.
Treasury Secretary Yellen blames inflation on Covid pandemic
As economists predict a downturn in the US economy, US Treasury Secretary Janet Yellen told reporters on Sunday that the inflation America is facing is due to Covid-19. “It’s important to realize that the cause of this inflation is the pandemic,” Yellen said. “This has led to a dramatic increase in demand… for products,” she continued. “And although the supply of products has increased in the United States and around the world, not as much as the demand.”
The gold bug and economist Peter Schiff scoffed at Yellen’s statements about Covid-19 causing inflation. Schiff pointed out in a tweet that he believed the Federal Reserve was responsible for the loss of purchasing power. “According to Yellen, inflation results from a dramatic increase in consumer demand to buy products,” Schiff said. tweeted. “But where did consumers get the money to buy these products? From the government, which in turn got the money from the Fed. The Fed caused the inflation.
When Yellen spoke on Sunday, she did not address the highly reprimanded government mandates the U.S. government has imposed over the past two years. US officials across the country have shut down businesses, created terms like “essential workers,” developed vaccine mandates, enforced a rent moratorium for more than 16 months, and pumped more dollars into the supply. American monetary policy than in the first three quarters of the country. the whole story in less than two years.
On Sunday, however, Yellen’s statements on CBS’s “Face the Nation” indicate that she believes the virus, and not central planners, is in control of the US economy. “The pandemic has set the tone for the economy and inflation,” Yellen concluded. “And if we are to bring inflation down, I think continuing to make progress against the pandemic is the most important thing we can do.”
Minneapolis Fed Chairman Also Blames Supply Outages and Covid Virus – Biden Advisor Says Childhood Vaccination ‘Will Comfort American Families’
The day before Yellen’s speech on CBS, Minneapolis Federal Reserve Chairman Neel Kashkari explained that inflation will likely continue to rise over the next few months. “The calculations suggest that we are probably going to see somewhat higher readings over the next few months before they likely start to decline,” Kashkari said. Similar to Yellen, Kashkari pointed out that supply chain issues and the coronavirus pandemic are the main reasons inflation persists.
“We are seeing both an increase in demand because Congress has given lots of money to families and businesses to get through the pandemic, but we are also seeing supply disruptions at the same time due to the Covid virus Kashkari added. .
In addition, the director of the National Economic Council sitting under President Joe Biden, Brian Deese, told the press that fighting Covid would help ease inflation. When ABC News correspondent George Stephanopoulos asked Deese if he [is] whatever President Biden can do “to fight inflation, Deese responded by saying, “Number one: we have to finish [the] work on Covid … passing these pictures on to 5-11 year olds will bring a lot of comfort to American families. “
What do you think of rising inflation in America and the different views on the loss of purchasing power of American officials and economists? Let us know what you think of this topic in the comments section below.
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