Biden's $ 4.5 trillion infrastructure bills won't drive inflation high
White House press secretary Jen Psaki claimed Thursday that President Joe Biden's $ 4.5 trillion infrastructure proposals would not lead to higher inflation if passed by Congress.
“Our experts believe—and the data shows and the Federal Reserve chair, who operates independently, conveyed, yesterday—that most of the price increases we are seeing are expected to be temporary due to the consequences of restarting an economy shut down during the pandemic. And we’re seeing that in certain industries more than others as prices go back to where they were pre-pandemic,” White House press secretary Jen Psaki said.
Psaki stressed that the infrastructure package will increase childcare availability, help more people return to work or return to work, increase productivity and keep prices down.
Senate Democrats this week unveiled a $ 3.5 trillion "human infrastructure" package that includes several provisions in Biden's proposal. Senate Democrats plan to use the budget instrument to get the package biased through the panel, even if they are negotiating $ 1 trillion with Senate Republicans.
Inflation has been rising quickly in recent months. It was up 5.4 percent over 12 months as of June. Consumer prices are increasing at the fastest pace in decades, and critics pin the blame on the Biden administration’s high spending.
White House officials told news outlets that Summers met with National Economic Council director Brian Deese and Council of Economic Advisers chair Cecilia Rouse this week over inflation concerns.
Senate minority leader Mitch McConnell (R-Kentucky) disagreed with Summers and warned of the White House's plans to spend a lot on infrastructure and what it calls human infrastructure.
16 July 2021