{"id":1007075,"date":"2021-11-13T10:29:23","date_gmt":"2021-11-13T15:29:23","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1007075"},"modified":"2021-11-13T10:29:25","modified_gmt":"2021-11-13T15:29:25","slug":"kerosene-on-the-fire-obama-adviser-says-biden-spending-agenda-is-worsening-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kerosene-on-the-fire-obama-adviser-says-biden-spending-agenda-is-worsening-inflation\/","title":{"rendered":"\u2018Kerosene On The Fire\u2019: Obama Adviser Says Biden Spending Agenda Is Worsening Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fkerosene-on-the-fire-obama-adviser-says-biden-spending-agenda-is-worsening-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1007075&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A former top economic official for President Barack Obama decried the Biden administration for overstimulating the economy following COVID-19 and the lockdown-induced recession.<\/p>\n<p>Jason Furman \u2014 who chaired the Council of Economic Advisers and currently works as a professor at Harvard University \u2014 told the <a href=\"https:\/\/apnews.com\/article\/why-is-us-inflation-so-high-77dc786442ccc3ed8092a7647716d682\">Associated Press<\/a> that although \u201ca sizeable chunk of the inflation we\u2019re seeing is the inevitable result of coming out of the pandemic,\u201d policymakers \u201csystematically underestimated inflation.\u201d<\/p>\n<p>\u201cThey poured kerosene on the fire,\u201d he argued, pointing to Biden\u2019s $1.9 trillion American Rescue Plan.&nbsp;<\/p>\n<p>\u201cInflation is a lot higher in the United States than it is in Europe,\u201d Furman added. \u201cEurope is going through the same supply shocks as the United States is, the same supply chain issues. But they didn\u2019t do nearly as much stimulus.\u2019\u2019<\/p>\n<p>Though Furman thinks that inflation \u201cis going to come down from this year\u2019s blistering pace,\u201d it will remain \u201cvery, very high compared to the historical norms we have been used to.\u201d<\/p>\n<p>\u201cThey need to stop telling us that inflation is transitory, start becoming more worried about inflation, then act in a manner consistent with being worried,\u201d Furman warned policymakers. \u201cWe\u2019ve seen a little bit of that, but only a little bit.\u2019\u2019<\/p>\n<p>In October, inflation for consumer prices <a href=\"https:\/\/www.dailywire.com\/news\/breaking-bidenflation-price-increases-soar-to-30-year-high-outpace-economist-predictions\">hit<\/a> a year-over-year rate of 6.2% \u2014 the highest level in three decades. As the American economy continues to witness rising prices, other economic advisers from the Obama era have also called for a slowdown on fiscal and monetary stimulus.&nbsp;<\/p>\n<p>Last month, Larry Summers \u2014 who directed the National Economic Council from 2009 to 2011 \u2014 <a href=\"https:\/\/www.dailywire.com\/news\/top-obama-economic-adviser-torches-biden-admin-over-skyrocketing-inflation-my-alarm-is-increasing\">rebutted<\/a> Treasury Secretary Janet Yellen\u2019s assertion that the United States is not losing control of price levels.<\/p>\n<p>\u201cShe expresses confidence that inflation is decelerating and will be back to target levels by the end of next year,\u201d he said on Twitter. \u201cI hope she is right but I think it\u2019s much less than a 50\/50 chance.\u201d<\/p>\n<p>\u201cGiven lags in the indices, housing inflation is almost certain to soar in coming months. With super-tight labor markets, rising strike activity and real wages having declined, increases in wage inflation are likely as well,\u201d Summers continued. \u201cI actually believe the gap between Treasury &amp; Fed statements and the everyday experience of businesses and consumers in terms of inflation has widened in recent months.\u201d<\/p>\n<p>\u201cUntil the Fed &amp; Treasury fully recognize the inflation reality, they are unlikely to deal with it successfully,\u201d he added.<\/p>\n<p>In an <a href=\"https:\/\/www.marketplace.org\/2021\/11\/09\/janet-yellen-on-debt-inflation-infrastructure-and-what-the-economy-needs\/\">interview<\/a> on Tuesday, Yellen doubled down on<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A former top economic official for President Barack Obama decried the Biden administration for overstimulating the economy following COVID-19 and the lockdown-induced recession.Jason Furman \u2014 who chaired the Council of Economic Advisers and currently works as a professor at Harvard University \u2014 told the Associated Press that although \u201ca sizeable chunk of the inflation we\u2019re seeing is the inevitable result of coming out of the pandemic,\u201d policymakers \u201csystematically underestimated inflation.\u201d\u201cThey poured kerosene on the fire,\u201d he argued, pointing to Biden\u2019s $1.9 trillion American Rescue Plan.\u00a0\u201cInflation is a lot higher in the United States than it is in Europe,\u201d Furman added. \u201cEurope is going through the same supply shocks as the United States is, the same supply chain issues. But they didn\u2019t do nearly as much stimulus.\u2019\u2019Though Furman thinks that inflation \u201cis going to come down from this year\u2019s blistering pace,\u201d it will remain \u201cvery, very high compared to the historical norms we have been used to.\u201d\u201cThey need to stop telling us that inflation is transitory, start becoming more worried about inflation, then act in a manner consistent with being worried,\u201d Furman warned policymakers. \u201cWe\u2019ve seen a little bit of that, but only a little bit.\u2019\u2019In October, inflation for consumer prices hit a year-over-year rate of 6.2% \u2014 the highest level in three decades. As the American economy continues to witness rising prices, other economic advisers from the Obama era have also called for a slowdown on fiscal and monetary stimulus.\u00a0Last month, Larry Summers \u2014 who directed the National Economic Council from 2009 to 2011 \u2014 rebutted Treasury Secretary Janet Yellen\u2019s assertion that the United States is not losing control of price levels.\u201cShe expresses confidence that inflation is decelerating and will be back to target levels by the end of next year,\u201d he said on Twitter. \u201cI hope she is right but I think it\u2019s much less than a 50\/50 chance.\u201d\u201cGiven lags in the indices, housing inflation is almost certain to soar in coming months. With super-tight labor markets, rising strike activity and real wages having declined, increases in wage inflation are likely as well,\u201d Summers continued. \u201cI actually believe the gap between Treasury &#038; Fed statements and the everyday experience of businesses and consumers in terms of inflation has widened in recent months.\u201d\u201cUntil the Fed &#038; Treasury fully recognize the inflation reality, they are unlikely to deal with it successfully,\u201d he added.In an interview on Tuesday, Yellen doubled down on the argument that Biden\u2019s multitrillion-dollar \u201cBuild Back Better\u201d agenda ought to be passed despite inflationary risks.\u201cWell, inflation has been running at higher levels than we\u2019ve been accustomed to seeing for a long time. And I know that really imposes a burden on households,\u201d Yellen told Marketplace host Kai Ryssdal before saying that inflation is \u201ca consequence of recovery from a very severe shock due to the pandemic and something that will work itself out over time.\u201d\u201cMonetary policy would have a role to play if this turns out to be something that\u2019s endemic. In the 1970s, we saw supply shocks turn themselves into endemic inflation, wages increased, prices increased as a consequence. We\u2019re not seeing that now. I don\u2019t believe we will. But if that were the case, the Federal Reserve would have a role to play to keep it under control,\u201d Yellen added.The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1007075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1007075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1007075"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1007075\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1007075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1007075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1007075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}