Major economists think Biden's spending plan could push inflation even higher
Inflation ‘not impacting consumer behavior so far’: Investment strategist
Chief Investment Officer at Haverford Trust, Hank Smith, argues retail sales beating analyst expectations is a ‘testament to how good of a shape the consumer is’ and ‘how much pent up demand there still is regarding getting back to normal.’
President Biden has started to bill his massive social spending and climate bill as the key to slowing hotter-than-expected inflation, but three top economists say the $1.75 trillion package could ultimately add more fuel to the fire.
Speaking during a virtual seminar hosted by the National Association for Business Economics on Wednesday, Moody's Analytics chief economist Mark Zandi, American Action Forum President Douglas Holtz-Eakin and Harvard professor Doug Elmendorf agreed the president's signature economic plan will add to inflationary pressures in the short term, but remained divided over how concerning that is.
CONSUMER PRICES SURGE BY MOST IN 31 YEARS
Their comments come as Democratic lawmakers debate the merits of injecting another trillion-plus into the economy after the government reported that consumer prices in October had soared by 6.2% from the year-ago period, the fastest pace in 31 years. Some moderate lawmakers have voiced increased uneasiness over the impact the bill could have on inflation. Republicans have also attacked the bill as an inflation accelerant.