Former editor and editor of The Gartman Letter Dennis Gartman, Payne Capital Management President Ryan Payne and Morgan Stanley Wealth Management Senior Vice President Jim Lacamp discuss markets and the economy.
The White House on Tuesday denied saying President Biden’s policies were responsible for the high inflation that has materialized under his control.
The comments were made by National Economic Council Director Brian Deese and White House Press Secretary Karine Jean-Pierre after the White House announced last year that inflation would be transitory. Now, Americans are facing the highest inflation in 40 years.
“His policies have helped the economy recover. That’s what his policy has done, his policies have done,” Jean-Pierre said in response to a question from Peter Doocy of Fox News about whether Biden assumes some responsibility for inflation. “When we talk about gas prices right now, this is really Putin’s rising gas … We’ve seen a 60% increase in recent months due to the accumulation and invasion of Ukraine.” .
Deese argued that an expected measure by the president to forgive student loan debt would make a “rather small” contribution to inflation.
White House Press Secretary Karine Jean-Pierre speaks during the daily White House briefing in Washington on Wednesday, May 18, 2022. (AP Photo / Susan Walsh / AP Newsroom)
BIDEN’S INFLATION PLAN CALLS ON THE FED, THE CONGRESS TO ACT, SHOWING THE LIMITS OF EXECUTIVE RESPONSE
Jean-Pierre also promoted economic growth since Biden took office at the end of the COVID-19 pandemic last year and said Biden is “frustrated by what the American people have to go through” with the inflation.
The press secretary’s comments come when Republicans aggressively attack Biden for historically high inflation facing voters. They say the $ 1.9 trillion “American Rescue Plan” stimulus plan that Biden signed last year contributes significantly to the rate of inflation.
Republicans and many economic analysts also say that if the president forgives student loan debt, as is rumored to be planned, it will further fuel inflation. Deese rejected that argument Tuesday.
National Economic Council Director Brian Deese talks about rising food prices at a White House press conference 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 would be over the years or a couple of decades,” Deese told reporters at a White House press conference on Tuesday. “And so the impact on short-term inflation is likely to be quite small.”
Deese added: “Since the president has not made any 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 would be quite small. . “
Deese also declined to confirm reports that Biden plans to cancel up to $ 10,000 in student debt per borrower, saying Biden “has not made any decision on this policy.” He also said that people who have student debts are “financially distressed.”
President Joe Biden wears a face mask and greets Air Force One at Capital Region International Airport on Tuesday, October 5, 2021 in Lansing, Michigan (Photo AP / Evan Vucci / AP Newsroom)
EXPERTS WARN THAT BIDEN CANCELS DEBT STUDENT PAINTING DEBT INFLATION
But experts, including the chair of the Federal Budget Responsible Committee, Maya MacGuineas, say forgiving student loan debt would inject a massive amount of money into the economy while imposing a bill on taxpayers.
“A total debt cancellation would be a mass delivery to wealthy doctors and lawyers, it would worsen our inflation crisis and cost almost as much as the 2017 tax cuts,” MacGuineas said last month.
“Even partial debt cancellation would be costly, regressive and inflationary,” he continued. “Forgiving $ 10,000 per person in debt would cost as much as the universal pre-K or a full extension of the ACA’s extended grants.”
CLICK HERE TO GET THE FOX BUSINESS APPLICATION
Meanwhile, Biden published an opinion piece in the Wall Street Journal on Tuesday outlining a plan to fight inflation, including respect for Fed independence, tax code reform, and passing legislation to address inflation. housing shortage.
Houston Keene of FOX Business contributed to this report.