Posted by Curt on 13 December, 2021 at 10:24 am. 3 comments already!


by Jack Davis

Inflation in President Joe Biden’s America is only going to get worse, and Biden’s signature policy isn’t likely to help even if it passes, according to two members of former President Barack Obama’s economic team.

Larry Summers, director of the White House National Economic Council under Obama, and Steven Rattner, who led Obama’s auto industry task force, gave their warnings Friday in an interview on the Bloomberg News show “Wall Street Week.”


Summers, who has been sounding the alarm about inflation for months, said the latest figures pegging inflation at 6.8 percent prove the economic trend isn’t merely “transitory, as the Biden White House has long claimed.



He cited statements by Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, who told the House Financial Services Committee Dec. 1, according to The Hill, that inflation has risen higher and laster longer than the administration expected.

“We’re having it confirmed that it’s not transitory, and I think everybody recognizes now with the statements from Chairman Powell, with the statements from Secretary Yellen, that this isn’t going to just go away of its own accord,” said Summers, who served as treasury secretary at the end of the second Clinton administration. “That the Fed’s going to have to take substantial action to control inflation unless there’s some other kind of adverse development, a crack in markets or something of that kind.
“We’ve put in motion for the first time in 40 years, excessive inflation, caused by overheating of the economy, and that’s going to have to be worked out of the system and that’s probably not going to be such an easy thing,” he said.

Rattner also did not offer any rosy hopes that inflation would be gone within a year.

“I think you have to recognize that it’s a problem that was not created in two months. It’s a problem created over the last two years, and so it’s going to take multiple years, certainly, to work it out,” he said.
Noting that the inflation that stalked the 1970s did not go away easily and without significant negative economic events, Rattner said the battle to curb inflation “is going to be painful. And it’s going to be painful for growth.”
“It’s going to be painful for jobs. And we do have an election coming next year which is going to be complicated,” he said.

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