Former editor and publisher of The Gartman Letter Dennis Gartman, Payne Capital Management President Ryan Payne and Morgan Stanley Wealth Management Senior Vice President Jim Lakamp discuss markets and the economy.
On Tuesday, the White House declined to say that President Biden’s policies were responsible for high inflation, which was materializing under his watch.
The remarks were made by National Economic Council Director Brian Deese and White House spokeswoman Karin Jean-Pierre after the White House predicted last year that inflation would be transient. Americans now face one of the highest inflation in 40 years.
“His policies have helped keep the economy afloat. That’s what he did, his policies did, “Jean-Pierre said in response to a question from Fox News’s Peter Ducy if Biden was taking any responsibility for inflation. “When we talk about gas prices at the moment, this is really Putin’s increase in gas … In the last few months, we have witnessed about a 60% increase due to its accumulation and invasion of Ukraine.”
Deese argues that an expected move by the president to forgive student loans will have a “rather small” contribution to inflation.
White House spokeswoman Karin Jean-Pierre speaks at a daily White House briefing in Washington, DC, Wednesday, May 18, 2022 (AP Photo / Susan Walsh / AP Newsroom)
BIDEN’S INFLATION PLAN CALLS FOR FED, CONGRESS TO ACT, SHOWING THE LIMITS OF RESPONSE TO THE EXECUTIVE EXECUTION
Jean-Pierre also cited economic growth since Biden took office at the end of the COVID-19 pandemic last year, and said Biden was “disappointed with what the American people have to go through” by inflation.
The spokesman’s comments came as Republicans aggressively attacked Biden over historically high inflation. They say Biden’s $ 1.9 trillion stimulus plan, signed last year, contributes significantly to inflation.
Republicans and many economic analysts also say that if the president forgives student loan debt, as he says he plans to do, it will further fuel inflation. Deeze dismissed the argument Tuesday.
Director of the National Economic Council Brian Deez spoke about rising food prices at a press briefing at the White House on September 8, 2021 in Washington, DC. Deese said consolidation in beef, pork and poultry processing has raised prices and (Kevin Dietsch / Getty Images / Getty Images)
KROGER MANAGES INFLATION WITH SELECTED PRICE INCREASES
“The economic impact of any proposal will be for years or decades,” Deese told reporters at a White House briefing on Tuesday. “So the impact on inflation in the short term is likely to be quite small.”
Deez added: “Since the president has not made a decision and we are not talking about a specific plan, I will not speculate specifically, but I think most of the analysis suggests that the short-term impact will be quite small.”
Deese also declined to confirm reports that Biden plans to cancel up to $ 10,000 in student debt to a borrower, saying Biden “has not made any decision on this policy.” He added that people who have student debt are “fighting economically”.
President Joe Biden holds his face mask and waves as he leaves Air Force One at Capital Region International Airport, Tuesday, October 5, 2021, in Lansing, Michigan (AP Photo / Evan Vucci / AP Newsroom)
BIDEN’S STUDENT DEBT CANCELLATION WILL BETTER INFLATION, EXPERTS WARN
Experts, including responsible federal budget committee chairwoman Maya McGuinness, say debt forgiveness for student loans will bring huge sums of money into the economy while burdening taxpayers with the bill.
“Complete debt cancellation would be a huge help to wealthy doctors and lawyers, worsen our inflation crisis and cost almost as much as the entire 2017 tax cut,” McGuinness said last month.
“Even partial debt cancellation would be costly, regressive and inflationary,” she continued. “Forgiving $ 10,000 per person in debt would cost as much as universal pre-training or a full extension of extended ACA grants.”
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Biden, meanwhile, published an article in the Wall Street Journal on Tuesday outlining a plan to fight inflation, including respecting the Fed’s independence, reforming the tax code and passing legislation to tackle housing shortages.
Houston Keane of FOX Business contributed to this report.
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