“By the way, speaking of inflation, the overwhelming consensus is that it’s going to go up a little bit and then go down again,” Biden said at the time.
Tapper also played a clip of Deese talking about inflation at the time: “To the extent that people focus on inflationary pressures in the short term, that’s not the point,” he said at the time.
“You think you and the president are wrong and that inflation isn’t short-term, it just pops up a bit and then goes down again?” Tapper asked Deese.
“No, I don’t think so, Jake,” Deese replied. “I think what we’ve been saying consistently is that the pandemic and the economy are connected, and we’ve certainly seen the Delta variant pose real health problems for the economy, but it also had economic implications.”
“We’re seeing these price increases, this inflation globally because of the supply chain challenges associated with COVID. So we’re currently trying to attack these issues as well.”
Deese said the administration is “working with ports across the country to ensure that goods move faster through the economy.”
Searched for infrastructure package Congress it recently passed “our most important step in decades to truly invest in arteries that help move goods” more cheaply and efficiently.
Tapper then pressed Deese for the $1.9 trillion COVID relief package for the American Recovery Plan, which the Biden executive had pushed for. Tapper is the successor of Larry Summers, who served as the director of the National Economic Council under former President. Barack Obama, viewed the bill as an important reason behind inflation.
“Is it possible that Americans are currently suffering from high prices as the Biden administration overstimulated the economy as all that money was going into the economy?” Tapper asked.
“No, that’s not our perspective. The American Recovery Plan saved us from an acute economic emergency,” said Deese, noting that 18 million Americans were collecting unemployment benefits when Biden took office, and thousands died every day.
Deese also said Summers agreed with the Biden administration. democratsThe Building Better Act, a social spending measure of nearly $2 trillion, will not add to inflation and will “really increase the productive capacity of our economy.”
Tapper then asked Deese when he thought inflation would return “below the normal 2 percent level.”
Deese said most experts believe inflation “will moderate next year.”
“But I really think … most Americans are less concerned with forecasts and more concerned with actions and concrete actions to address these issues. That’s our focus.”