{"id":1217765,"date":"2022-01-15T10:04:55","date_gmt":"2022-01-15T15:04:55","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1217765"},"modified":"2022-01-15T10:04:57","modified_gmt":"2022-01-15T15:04:57","slug":"top-obama-economist-delivers-stark-warning-about-what-is-happening-with-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/top-obama-economist-delivers-stark-warning-about-what-is-happening-with-inflation\/","title":{"rendered":"Top Obama Economist Delivers Stark Warning About What Is Happening With Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/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%2Ftop-obama-economist-delivers-stark-warning-about-what-is-happening-with-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=1217765&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>Larry Summers, who served as Treasury Secretary under former President Bill Clinton and director of the National Economic Council under former President Barack Obama, warned in an interview this week that the U.S. is moving toward \u201chigher entrenched inflation.\u201d<\/p>\n<p>\u201cI think the data flow is saying what I\u2019ve thought for quite some time that, yes, there are transitory elements in inflation, and very likely they will recede, but we are basically moving towards higher entrenched inflation,\u201d Summers said. \u201cIt\u2019s there in expectations, it\u2019s there in wages, it\u2019s there in labor shortages, it\u2019s there in the pervasive pattern across many different prices.\u201d<\/p>\n<p>\u201cAnd people try to excuse it by picking this figure and that figure from month to month, but we\u2019ve got an overheated economy, and the Fed\u2019s gonna have a very real challenge of cooling that economy off and doing it in a controlled way,\u201d he continued. \u201cThat has not been done very successfully in the past. So it\u2019s going to be a very challenging year for macroeconomic policy.\u201d<\/p>\n<p>When asked if top White House officials were right in saying that the inflation problem was a result of \u201ca supply side problem,\u201d Summers responded, \u201cNo, he\u2019s wrong.\u201d<\/p>\n<p>\u201cWe have a massive, overheated labor market,\u201d Summers continued. \u201cWe have the highest ratio of vacancies to unemployment in the country\u2019s history, by a large margin. We have shortages of labor, in everything from psychotherapy, to McDonalds, in everything from investment analysts to gardeners, that suggests a surfeit of purchasing power and demand relative to the capacity of the economy to produce and unless we bring those things into balance, we\u2019re going to have not just higher inflation, but possibly even accelerating inflation. And we need to recognize that we have an overheated economy that we are going to need to cool off.\u201d<\/p>\n<p>Summers later <a href=\"https:\/\/www.bloombergquint.com\/amp\/onweb\/summers-says-u-s-risks-recession-by-blaming-inflation-on-greed\">added<\/a>, \u201cEvery time a Washington policy maker suggests that this is caused by corporate greed or some such, they are delaying the date at which we will achieve the credibility necessary to bring down inflation with stable employment.\u201d<\/p>\n<p>Summers also said with respect to President Joe Biden\u2019s picks for three openings on the Fed\u2019s Board of Governors that what the Fed decides to focus on is going to make or break its credibility and that could cause further problems.<\/p>\n<p>\u201cIf a sense develops that there\u2019s a desire to politicize the Fed by focusing it towards other issues \u2014 beyond the crucial issues of financial stability \u2014 I think that could be problematic for the Fed\u2019s credibility,\u201d Summers said. \u201cAnd so it will be very important for the nominees, who have distinguished track records in different areas in the past, to present their views to Congress and for Congress to very seriously consider those views.\u201d<\/p>\n<p>WATCH:<\/p>\n[embedded content]\n<p><strong><em>Related:<\/em> <a href=\"https:\/\/www.dailywire.com\/news\/top-obama-economic-adviser-fears-recession-says-federal-reserve-was-too-late-on-addressing-inflation\">Top Obama Economic Adviser Fears Recession, Says Federal Reserve Was Too Late On Addressing Inflation<\/a><\/strong><\/p>\n<p>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 <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Larry Summers, who served as Treasury Secretary under former President Bill Clinton and director of the National Economic Council under former President Barack Obama, warned in an interview this week that the U.S. is moving toward \u201chigher entrenched inflation.\u201d \u201cI think the data flow is saying what I\u2019ve thought for quite some time that, yes, &#8230;<\/p>\n","protected":false},"author":134,"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-1217765","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\/1217765","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\/134"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1217765"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1217765\/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=1217765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1217765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1217765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}