The White House did not say whether President Biden's policies are responsible for the high inflation that has occurred under his watch.
After the White House predicted inflation would be transitory, comments by National Economic Council Director Brian Deese and White House press secretary Karine Jean-Pierre were made by the White House last year. Americans are facing some of the highest inflation in 40 years.
His policies have helped the economy get back on its feet. Jean-Pierre said in response to a question by Fox News spokesman Peter Doocy about whether Biden takes any responsibility for inflation, that's what his policy has done. This is Putin's gas hike, and we have seen about 60% increase in the past several months because of the amassing and his invasion of Ukraine. Deese argued that an expected move by the president to forgive student loan debt would make a relatively small contribution to inflation.
Since Biden took office at the end of the COVID 19 epidemic last year, Jean-Pierre has praised economic growth and said Biden is frustrated about what the American people have to go through with inflation.
The $1.9 trillion American Rescue Plan stimulus plan Biden signed into law last year is a major factor in the inflation rate, according to the experts.
Republicans and many economists say that if the president forgives student loan debt, as he's planning to do, that will feed inflation. Deese pushed back Tuesday against that argument.
The economic impact of any proposal would be over the course of years or a couple of decades, Deese told reporters at the White House press briefing Tuesday. The impact on inflation is likely to be quite small in the near term. Deese said that because the president hasn't made a decision, and we won't speculate about a specific plan, I won't speculate, but I think most of the analysis suggests that the near-term impact would be pretty small. Biden plans to cancel up to $10,000 in student debt per borrower, and Biden hasn't made any decision on that policy, according to Deese. He said that the people with student debt are struggling economically. But experts, including Committee for a Responsible Federal BudgetFederal Budget president Maya MacGuineas, say forgiving student loan debt would inject a huge amount of money into the economy while saddling taxpayers with the bill.
A massive debt cancellation would hurt our inflation crisis, and would cost almost as much as the entire 2017 tax cuts, MacGuineas said last month.
She continued that partial debt cancellation would be costly, regressive, and inflationary. If you give $10,000 per person of debt, it would cost as much as universal pre-K or a full extension of the expanded ACA subsidies. Biden has outlined a plan to fight inflation, including respecting the Fed's independence, reforming the tax code and passing legislation to address the housing shortage, according to a op-ed in the Wall Street Journal Tuesday.