Wednesday, May 12, 2021

Biden Press Secretary: Government Prepared for 'Months or Quarters' of Higher Inflation

The Biden administration and the Federal Reserve are going to let price inflation rip through the economy.

White House Press Secretary Jen Psaki stated during a briefing today that the administration is prepared for "transitory" inflation growth where there will be "months or quarters" of price pressures.

"We knew just as the economy shrunk and shut down that as it's turning back on, there would be some of these impacts, but we are constantly tracking [...] and we knew that a lot of the investments that we've proposed were long needed even before the last several months," Psaki added in justifying continued mad government spending.

She also pointed out that data shows supply impacts on price increases, such as in the motor vehicle industry, struggling through a chip shortage. Additionally, the travel sector is seeing a growth in prices as people get vaccinated and are more open to vacations.

Note well: What she is putting forward is the impact on prices because of base price inflation and bottleneck-caused price inflation but what she is not mentioning is the elephant in the room, the mad Federal Reserve money printing.

I discussed all this in a recent podcast:

In an early April edition of "This Week in Economics with Robert Wenzel," I discussed the price inflation that is about to hit and the various factors driving it and what would have to happen for it to get really out of control.

The podcast version is here. And it is also available on your favorite podcast platform.

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1 comment:

  1. Welcome to This Week In Economics With Robert Wenzel, I am Robert Wenzel! Simple but epic!