Top Obama Economic Adviser Torches Biden Admin Over Skyrocketing Inflation: ‘My Alarm Is Increasing’ | Eastern North Carolina Now

    Publisher's Note: This older, but yet to be published post is finally being presented now as an archivable history of the current events of these days that will become the real history of tomorrow.

Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Daily Wire News.

    On Monday, Larry Summers, a former top economic adviser to President Barack Obama, pushed back on remarks that Treasury Secretary Janet Yellen made on Sunday where she dismissed Summers' concerns over inflation.

    Yellen, appearing on CNN's "State of the Union" with host Jake Tapper, was asked to respond to these recent remarks from Summers:

    Now we see inflation becoming more widespread in a wider range of products, spreading to the housing and labor markets. I have been alarmed for a long time, and I'm more alarmed now. ... We're in more danger than we have been during my career of losing control of inflation in the U.S.

    When Tapper asked Yellen if she thought that Summers was wrong, Yellen responded, "I think he's wrong, I don't think we're about to lose control of inflation."

    "I agree, of course, we are going through a period of inflation that's higher than Americans have seen in a long time," she added. "And it's something that's obviously a concern and worrying them. But we haven't lost control."

    Summers responded to Yellen in a series of tweets on Monday afternoon, saying, "She expresses confidence that inflation is decelerating and will be back to target levels by the end of next year. I hope she is right but I think it's much less than a 50/50 chance."

    "I began my career when Paul Volker was taking over at the Fed and not since then have I been more worried. I am curious at what point in the last 40 years Treasury thinks the risk of an inflation spiral are greater than they are now," Summers said. "When the Administration formulated its budget in February, it expected 2 percent inflation in 2021, I was warning about inflation. Their forecast is no longer operative. In May and June, @SecYellen expressed confidence that inflation would be back to the 2 percent range by late 2021 or early 2022. Now, this forecast is no longer operative."

    "In @CNN interview, @SecYellen asserts twice that inflation has decelerated. This is a bit misleading as the 3-month and 12-month CPI inflation rates are both around 5 percent on an annual basis," Summers continued. "And the trimmed mean and median inflation rates that exclude aberrant sectors (which used to be a stable of Administration's rhetoric) are now accelerating. The TIPS market is suggesting inflation in 3 percent range over 5 years and more next year. Breakeven inflation over 5 years is up 40 bps in the last month. Expectations data are even more disturbing. This is part of why my alarm is increasing and Treasury should be as well."

    "Given 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," Summers continued. "I actually believe the gap between Treasury & Fed statements and the everyday experience of businesses and consumers in terms of inflation has widened in recent months. Until the Fed & Treasury fully recognize the inflation reality, they are unlikely to deal with it successfully."

poll#154
Inarguably, the policies of the Democrats in congress and Joe Biden as the Executive is plunging the United States into a recession, if we are not already there; a recession that was completely avoidable. Will abrupt changes in policies occur in time?
  Yes, the Democrats have a bold plan, yet to be revealed, to save us.
  No, there will have to be a complete undoing of the damage done by these Democrats.
  I can't do simple math, so how am I to understand the concept of basic economics.
1,216 total vote(s)     What's your Opinion?

Go Back

HbAD0

Latest Op-Ed & Politics

University of Wisconsin tried to punish conservatives for the fact that liberals regularly commit crimes to silence opposition
most voters think EU officials not doing a good job on illegal immigration
Be careful what you wish for, you may get it
Come from behind by GOP candidate is a blueprint to 2024
Biden spending and energy policies to blame

HbAD1

Tuberculosis carried by illegal invaders has already infected Texas cattle
Sen. Ted Cruz (R-TX) said this week that the only campaign promise President Joe Biden has delivered on as president is the complete dismantling of the U.S. southern border.
Hamas is reeling after losing two of their most cherished leaders on the same day: military commander Saleh al-Arouri, and Harvard President Claudine Gay.
President Joe Biden’s brother told the Internal Revenue Service that Hunter Biden told him he was in business with a “protege of President Xi,” referring to the leader of China, according to notes by an IRS investigator that were divulged during a congressional interview of Jim Biden.
Gov. Roy Cooper seeks a temporary restraining order to block a law changing the composition of the State Board of Elections.
X owner Elon Musk mocked a news segment from ABC News this week that promoted President Joe Biden’s talking points about the Democrat-led Senate’s failed border bill, which critics and many experts have said would make the situation on the border worse.

HbAD2

That’s the question Marguerite Roza of Georgetown University’s Edunomics Lab sought to answer in a recent webinar on the topic.

HbAD3

 
Back to Top