Americans should brace to feel the effects of inflation because experts believe that we are reaching the peak due to the massive amount of money that President Joe Biden is shelling out, according to even his own experts like Cecilia Rose, the Biden administration’s Council of Economic Advisers Chair.
Chris Wallace, Fox News host, shined a light on how major this issue is when he showed that Biden’s proposed $6 trillion in spending just in his first 100 days in office is “more than six times what the nation spent to get us out of the Great Depression in the 1930s,” adjusting for the rate of inflation of course.
“Can you guarantee with all the spending that we’re not going to have a new round of overheating the economy and serious inflation?” Wallace asked.
“These are very serious concerns and we know that coming out of an extremely deep recession that there are going to be bumps along the way. So we expect that there have been supply chain disruptions that will cause some transitory increases in prices,” Rouse answered. “We know that there are some places where employers are struggling to find workers because, let’s face it, we’re still in the middle of the pandemic. Some workers would like to go back to work but they don’t have child care, their schools are not open, and the pandemic is still out of control in certain parts of our country.”
“So when we get to the other side of this pandemic, I fully expect that our labor market will come back and be flourishing. That said, we do expect some transitory price increases. The Fed expects that as well. We do not see evidence that at the moment those are — have become what we call de-anchored so that we expect runaway inflation,” she claimed. “But that said, we know we have to be vigilant and we are watching the data. But for the time being, we expect at most transitory inflation, that is what we expect coming out of a big recession.”