Biden rejects inflation problems again, claims price spikes are temporary View larger 'image
President Joe Biden says it is "highly unlikely that this or long-term inflation that will get out of hand. " AFP via Images
President Joe Biden Wednesday night again dismissed concerns that inflation could be more severe and longer lasting than 'we never thought so, although a choir of voices on Wall Street has started "accepting that recent price spikes may persist.
Danielle Lippi, a student and Republican enroller, asked Biden about the latest inflation data at CNN's Ohio Town Hall Wednesday night.
"Are you concerned about the price increase " inflation , especially as we see gasoline, automobile and food prices rising rapidly? ”she asked.
"What is your administration doing to help prevent the economy from overheating?e, so that the poor and the middle class are not affected by rising commodity prices in the long run?
Biden reiterated what White House and Federal Reserve officials have been saying for months: that prices are expected to rise as the economy thaws from the pandemic, but the Inflation will not last long as supply chain issues and shortages are resolved.
"The vast majority of experts, including Wall Street, suggest that it is highly unlikely that long-term inflation is going to get out of hand," Biden said. "There will be some short-term inflation as everything is now trying to pick up.
Federal Reserve Chairman Jerome Powell acknowledged that inflation would likely stay at high levels for a few months. Images
The president added that it was good news that “the economy is recovering significantly.” He noted that any comparison of prices today with the prices of a year ago an is going to be skewed because around the same time last year, the pandemic had ravaged the economy, pushing prices to record highs. when you think about it, the cost of an automobile has sort of come down to what he was before the pandemic"He said.
While some products, as the president said, have seen massive price drops during the pandemic and are just returning to prior levels pandemic, this is not the case with cars, which have led to some of the biggest inflation jumps in recent months.
Used car prices are in rise of approxiron 45.2% from 2019. Will Feuer
The cost of a car or truck new is up about 5.3% from a year ago, according to most recent data available from the Bureau of Labor Statistics . Compared to pre-2019 pandemic levels, the cost of a new car or truck is still up around 5%, according to the data.
Used cars are even "worse , For buyers. Over the past year, prices have increased by about 45.2%. Compared to 2019 levels, prices are still up 41.2%, according to federal data.
Pressed by CNN host Don Lemon on whether the massive federal spending proposed by the White House could further exacerbate inflation, Bi den pointed out a report from Moody 's published "Wednesday .