“We think the best approach over the next several months is to increase inflation marginally,” Jared Bernstein and Ernie Tedeski, two executives of Mr. Biden’s Economic Advisory Council Written in a blog post on Monday Underline some of the administration’s thinking. “However, we will carefully monitor both real price changes and inflation expectations for any signs of unexpected price pressures as the US can overtake the epidemic and enter the next economic expansion.”
Some Republicans describe that currency as dangerous. Florida’s Senator Rick Scott, the chairman of his party’s campaign team for the midterm elections of 2022, has called on Mr. Biden and Mr. Powell to present plans to fight inflation.
“Scott’s refusal to address this important issue has a direct negative impact on Floridians and families across our nation, and hurts low and fixed-income Americans,” Mr. Scott said in a news release last week. “It’s time for Biden to wake up from his lofty dream and realize that careless spending has consequences, inflation is real and America’s debt crisis is on the rise. Inflation is rising and Americans now deserve Biden’s answer. “
In recent administrations, economic teams spent very little time worrying about inflation, as inflationary pressures have persisted for decades. It has decreased The Fed’s average target of 10 of the last 12 years is more than 2.5 percent among the longest economic expansion in history.
Before the epidemic recession in the United States in 2020, President Donald J. Trump’s economic team wrote that “price inflation remains low and stable” with unemployment below 4 percent. As the economy struggled to pull out of the 2008 financial crisis under President Barack Obama, White House aides feared that prices might fall rather than rise.
“In view of the economic crisis, we were concerned about preventing deflation rather than inflation,” said the Chairman of the Economic Advisory Council, Austen Goolsby, during Mr. Obama’s first term.
The conversation has given large sums of money that the federal government is channeling to the economy, first under Mr. Trump and now under Mr. Biden. As the epidemic gained momentum, Congress approved more than $ 5 trillion to spend, including checks directly to individuals.