An ex-White House economist called out the Federal Reserve for not curbing inflation, while leftist media rushed to excuse Biden from worsening food and gas prices.
Kevin Hassett, who served as chairman of the White House Council of Economic Advisers under former President Donald Trump, appeared on the May 11 edition of Fox News host Maria Bartiromo’s show “Mornings with Maria” to slam the Fed. Hassett’s comments followed a May 11 government report that revealed that inflation was worse than expected at 8.3 percent year-over-year. “There is no sign that the Fed’s policies are having any effect at all right now,” Hassett told Bartiromo. The former White House economist even went so far as to predict an unprecedented “rout in markets” as pressure mounts on the Fed to cool down raging inflation.
Hassett wasn’t the only economic analyst to warn of a potential stock market flop. Lawrence McMillan, president of investment management firm McMillan Asset Management, published an op-ed headlined: “The S&P 500’s charts are pointing to more stock-market losses.”
Hassett’s analysis of the inflation report was more bad news for Americans already suffering under skyrocketing inflation and crippling supply chain blockages.
Hassett directly criticised the Biden administration, accusing them of exacerbating inflation and supply chain problems.
“[T]hey’re attacking supply when they should be feeding supply,” he said. “If they fed supply, they would help the Fed out and we wouldn’t have to go to these really, really major interest rate hikes to fix the problem.” Hassett continued: “If [they] don’t get fiscal policy help, then the Fed is going to have to take pretty extreme actions.” Federal Reserve Chairman Jerome Powell announced a historic hike in interest rates to the highest level in more than 20 years during a May 4 press conference.
Hassett stated that history shows the Fed is likely to raise interest rates several times as inflation increases.
Jason Furman (liberal Harvard University economist, former economic advisor to the Obama administration) reached similar conclusions as Hassett via Twitter. threadThe terrible inflation news. “The 12-month change in inflation peaked,” Furman tweeted. “Core inflation at 7.0% annual rate in April was faster than the 6.5% annual rate in the previous twelve months. Not a lot of comfort in that number.”
Yes, inflation did peak in April. However, core inflation of 7.0% per annum in April was more than the 6.5% rate over the past twelve months. That number doesn’t offer much comfort.
— Jason Furman (@jasonfurman) May 11, 2022
According to Investopedia core inflation is a method to calculate inflation using only volatile inputs, such as energy and food inflation.
Conservatives under attack Contact ABC News at (818) 460-7477, CBS News at (212) 975-3247 and NBC News at (212) 664-6192 and demand they report on the Fed and the Biden admin’s failure to contain inflation.
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