Former Obama Economic Advisor Larry Summers came clean about Joe Biden’s inflation and it is not good for Biden. He went on CNN to sound the alarm.
“Given that you were worried about this before almost anybody else, and given that now you have got all these CEOs saying it’s going to go a year, maybe even past that, right, at that point, it wouldn’t be transitory. How long do you think inflation is going to go up?,” asked CNN host Erin Burnett.
Summers said: “I think the odds are that we’re going to have inflation of a kind we haven’t seen in 30 years, until either the Fed takes some significant move with respect to monetary policy, or until there’s some kind of accident that disrupts the economic growth we’re enjoying.
“I think it’s possible but quite unlikely that inflation will recede back to its normal 2 percent level without some significant change in the path we’re now — we’re now on. I think the Fed has made a significant mistake in the approach that it’s taking by doubling down on the massive fiscal stimulus we had at the beginning of the year with really easy monetary policy.”
The Dems still plan on pushing through more spending. From The Hill:
House Democrats are racing this week to pass President Biden’s $1.75 trillion social and climate spending package, which would give the party a burst of momentum heading into the Thanksgiving recess.
Debate over the package has been filled with drama throughout the summer and fall, with progressive and centrists battling over the measure’s contents, pushing an embarrassing intra-party fight into the national spotlight.
Those battles will continue in the Senate, which is unlikely to take action on the measure before December. Centrist Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.) — whose arguments have helped whittle the once $3.5 trillion package in half — have yet to formally back the measure, and more changes are possible.
All the same, Democrats feel they are on the verge of a huge milestone in the House, where passage would be a big victory of the party.
House moderate holdouts have vowed to support the bill when it comes to the floor this week, even as they continue to wait for new numbers from the Congressional Budget Office (CBO) to see if the package will add to the deficit.
Larry Summers, Treasury Secretary for Clinton & Obama’s NEC Director:
“I think the odds are that we’re going to have #inflation of a kind we haven’t seen in 30 years” pic.twitter.com/BtKqDhXo81
— Christy Lewis (@Cavalewis) November 13, 2021