Biden’s advisers say Reuters is fueling pandemics, not politics

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By Doina Chiacu
WASHINGTON (Reuters) – Economic advisers to U.S. President Joe Biden, who defended his policies on Sunday amid rising inflation, said the COVID-19 pandemic was a global problem, not the result of administration programs.
Last week, U.S. consumer prices were the biggest gainer in 31 years, driven by rising gasoline and other commodity costs. Republicans have raised concerns about inflation, saying the rise reflects Biden’s broad spending agenda.
“There’s definitely high inflation right now. It’s affecting the pockets of Americans. It’s affecting their outlook,” Brian Deese, director of the White House National Economic Council, told NBC’s “Meet the Press.” “But it’s important to put that in context. When the president took office, we were facing an absolute economic crisis.”
The United States is not only suffering from severe inflation, as the Organization for Economic Co-operation and Development has high inflation in its 38 member countries and quadrupled oil prices over the past 18 months as energy demand has revived as a result of COVID reopening economies. 19 stops.
On Monday, Biden plans to sign a $ 1 trillion double-digit infrastructure bill that is expected to create jobs across the country, handing out billions of dollars to state and local governments, repairing collapsed bridges and roads, and expanding broadband Internet access for millions of Americans.
Finance Secretary Janet Yellen and Deese said in various televised appearances that they expect the measure, as well as $ 1.75 trillion in “Build Better,” to help lower domestic spending and climate investment bill inflation.
“There’s a need to take action,” Deese told CNN.
Deese said he was confident Nancy Pelosi, Speaker of the House of Representatives, would lead the “Build Better” bill to vote this week. That, however, will only be the first step, as the Senate has not yet passed the bill, and democratic divisions could threaten the chances of it in that chamber.
Senate Majority Leader Chuck Schumer said in an open letter to members of Democrats on Sunday that his chamber would not adopt the bill until it is approved by the House. Congress faces a very busy agenda next month as the federal government eliminates debt that is economically catastrophic and also avoids a partial government shutdown that would be politically embarrassing for Democrats.
SLIDING APPROVAL
High inflation is eroding wage gains, and increasing political risk in Biden, whose rate of approval is declining as Americans grow in greater concern for the economy. Expanding inflationary pressures can also complicate communication with the Federal Reserve. The Fed said again this month that high inflation is “expected to be transient.”
Biden’s $ 1.9 trillion American Rescue Plan stimulus package in March helped Americans deal with the pandemic, and spending today is strong and demand is strong, Yellen said on CBS’s “Face the Nation” show.
However, the supply of goods and labor remains low, and the federal government is struggling to unblock global supply chains affected by the pandemic.
Yellen said he expects prices to return to normal in the second half of next year if the pandemic continues to fall.
“The pandemic is committed to the economy and inflation,” Yellen said. “And if we want to bring down inflation, I think the most important thing we can do is to continue to make progress against the pandemic.”
Biden and his top economic advisers have been saying for months that inflation would be a short-term problem.
Asked if they were wrong on CNN’s “State of the Union” show, Deese said, “No, I don’t think so,” and expressed the strength of the U.S. economic recovery.
Former Secretary of the Treasury Larry Summers warned the Democrats that the U.S. Rescue Plan could boost inflation in February, saying on Sunday it would support infrastructure and Build Back Better bills because they make long-term investments.
“We’re going to sacrifice the future of our country … and we’re not going to make a significant contribution to reducing inflation if we get rid of this bill,” Summers said on CNN’s “Fareed Rude GPS”.
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