Politics

Top Obama economist criticizes President Biden, says current inflation ‘doesn’t look so transitory’

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Larry Summers, a top economist who served under the Obama administration, slammed the Biden White House as being “behind the curve” in taming inflation.

Speaking with CNN’s Chris Cuomo, Summers said he thinks “the policymakers in Washington unfortunately have almost every month been behind the curve,” adding that “they said it was transitory; it doesn’t look so transitory.” He continues on saying, “They said it was due to a few specific factors; doesn’t look to be a few specific factors. They said when September came and people went back to school, that the labor force would grow, and it didn’t happen.”

Summers tried to warn about the inflation tied to the $1.9 trillion coronavirus relief bill from the spring of 2021, saying he hoped Biden’s administration’s predictions would pan out.

“My experience is that you should hope for the best and plan for something much less than the best. I think that means stronger actions by the Fed, it means the administration has to be thinking about inflation,” Summers said.

“This might not have struck as much a nerve if it didn’t reflect concerns that were widely felt,” Summers said in a 45-minute telephone interview last week. Summers has warned everyone about inflation starting back in the spring. Though he feels like his concerns were unheard, he continues to slam the Biden Administration, blaming them for the inflation.

And the sticker shock is hitting where families tend to feel it most. At the breakfast table, for instance: Bacon prices are up 20% over the past year, egg prices nearly 12%. Gasoline has surged 50%. Buying a washing machine or a dryer will set you back 15% more than it would have a year ago. And used cars are up 26%. [AP News]

ARTICLE: DANI EGAN

MANAGING EDITOR: CARSON CHOATE

PHOTO CREDITS: FT.COM

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Dani Egan

Dani is a 20 year old business owner and college student from Phoenix, Arizona. She is graduating in 2021 with a bachelors in marketing, to which she will use to further her established marketing business. Dani writes for FBA because she has grown weary of the distrust of news sources. In being a part of a growing news source, Dani will help carve out a trusting path for the future.

Dani is a 20 year old business owner and college student from Phoenix, Arizona. She is graduating in 2021 with a bachelors in marketing, to which she will use to further her established marketing business. Dani writes for FBA because she has grown weary of the distrust of news sources. In being a part of a growing news source, Dani will help carve out a trusting path for the future.

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