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Economy

15 Nov 2021

Biden Economic Advisors Pandemic to be Blamed for Inflation, not Policies

The Index Today

U.S consumer prices reached a record high last week, reflecting the largest annual increase in 31 years. The high inflation has been fuelled by rising energy prices and goods. However, economic advisors have stated inflation as a cause of the covid pandemic, defending the president’s policy decisions.
The Organization for Economic Cooperation and Development also reported high levels of inflation in 38 countries with surging oil prices. This reflects that inflation is present on a global scale and is not limited to the U.S alone. Brian Deese, director at White House National Economic Council said during NBC’s Meet The Press, “There’s no doubt inflation is high right now. It’s affecting Americans pocketbooks. It’s affecting their outlook. But it’s important that we put this in context. When the president took office, we were facing an all-out economic crisis.”
Treasury Secretary Janet Yellen and Deese stated that the inflation could be brought down with the upcoming “Build Back Better” spending plan along with the climate investment bill. The Build Back Better bill will among the first steps to take up the bill for voting. On the other hand, Chuck Schumer, Senate Majority Leader has clearly informed the democrats that his party is not willing to vote for the bill until the until it is passed by the House.
President Joe Biden has been facing immense pressure and political risk due to his falling approval ratings. The eroding economy and inflationary pressures have added more challenges as the Fed sticks to its estimate of transitory inflation. According to 17 Nobel Laureates who have shown support for Biden’s Build Back Better agenda, inflation could become manageable in the long term.
Local governments are struggling to overcome the growing supply chain bottlenecks which have affected manufacturing and production. Janet Yellen has stated how prices are expected to go back to normal levels if the pandemic declines. She said, “The pandemic has been calling the shots for the economy and for inflation. And if we want to get inflation down I think continuing to make progress against the pandemic is the most important thing to do.”

©Photo: cnn.com

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