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White House Not ‘Sitting on Our Hands’ About Inflation, Biden Adviser Says

EconomyJul 16, 2021 02:00PM ET
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White House Not ‘Sitting on Our Hands’ About Inflation, Biden Adviser Says

(Bloomberg) -- The White House views inflationary pressures as temporary and is addressing supply crunches to limit price growth, according to one of President Joe Biden’s economic advisers.

“We’re focused on the economic boom. Now, when it comes to inflation, we’re far from sitting on our hands there, either,” Jared Bernstein, a member of the White House Council of Economic Advisers, said in a Bloomberg Television interview with Annmarie Hordern on Friday.

The White House is addressing the supply-side issues related to ports, housing and microchips that have pushed up prices, he said. Officials are meeting representatives of the homebuilding industry Friday as Biden seeks to address a housing-supply shortage that’s spurring a record increase in home prices.

Prices paid by consumers increased the most in more than a decade in June. While the Biden administration has said the effects are transitory and linked to parts of the economy that are rapidly reopening, some segments -- such as rent -- provide more long-lasting price pressure.

Price-increase fears are feeding into consumer sentiment, which declined to a five-month low in early July as expectations for inflation over the next year rose to the highest since 2008.

“Those increases have been driven by pandemic-effected sectors,” Bernstein said. “Longer-term expectations remain pretty solidly anchored below 3%.”

The inflation debate complicates Biden’s push for additional government spending, with the Senate Democrats’ $3.5 trillion infrastructure package already facing pushback.

Federal Reserve Chair Jerome Powell, whose four-year term expires in February, was confronted by policy makers Thursday about his own view that inflation is transitory. Powell defended the central bank’s continued support of the economy through $120 billion of monthly asset purchases and pledged to keep that up until the Fed sees “substantial further progress” on its employment and inflation goals.

At the same time, the surge in prices has surprised Fed officials, Powell said this week. It remains to be seen where inflation settles out once the acceleration in prices for hotel rooms, plane tickets, and other areas in high demand during the post-pandemic boom settle, he said.

Bernstein declined to comment on Powell’s future and performance thus far.

©2021 Bloomberg L.P.

 

White House Not ‘Sitting on Our Hands’ About Inflation, Biden Adviser Says
 

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Comments (5)
Angus Malarkey
Angus Malarkey Jul 17, 2021 7:46AM ET
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"Economic Booms" don't require $120 BILLION MONTHLY life support.
sally cornish
sally cornish Jul 16, 2021 3:51PM ET
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They definitely are not sitting on their hands, they are trying to destroy the country even further by pushing trillions of additional spending on top of an already crumbling economic model... hyper-inflation that is not "transitory" as they were trying to gaslight, rising home prices with declining home sales, cost of living increases in blue states that are upwards of 85% in some areas of California above the national average, personal/corporate/government debt at all time highs, market tanks any time they hint they might raise interest rates even 0.001%, and a tyrannical administration that is even trying to eliminate checks and balances such as the filibuster to push through trillions of dollars of partisan spending...yeah, they definitely are not sitting on their hands...
sally cornish
sally cornish Jul 16, 2021 3:51PM ET
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Let's also not forget that the housing crisis is compounded by the fact that landlords are going bankrupt because they cannot evict non-paying tenants...who cannot afford alternate housing dur to hyper-inflation...
Connecticut Yankee
A_Jaundiced_Eye Jul 16, 2021 3:42PM ET
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"The White House views inflationary pressures as temporary..." Joe Biden is temporary.
Steve Austin
Steve Austin Jul 16, 2021 3:42PM ET
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So are you.
Angus Malarkey
Angus Malarkey Jul 16, 2021 3:42PM ET
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...He/She isn't in the Whitehouse pretending that the Fed created disaster is short-term.
Rosemary Okunchemi
Rosemary Okunchemi Jul 16, 2021 2:45PM ET
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okay I don't want to get the same with 100 million my father $1000000
Rosemary Okunchemi
Rosemary Okunchemi Jul 16, 2021 2:44PM ET
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