• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Republica Press

Your Business & Political News Source

REPUBLICA PRESS
Your Business & Political News Source

  • Home
  • BUSINESS
  • MONEY
  • POLITICS
  • REAL ESTATE
  • SCIENCE/TECH
  • US
  • WORLD

As the U.S. government spends big, the Fed’s vice chair pushed back on inflation worries.

by

The Federal Reserve’s vice chair, Richard H. Clarida, pushed back on concerns raised by two prominent economists — Lawrence H. Summers, the former Treasury secretary, and Olivier J. Blanchard, former chief economist at the International Monetary Fund — that big government spending risks of out-of-control inflation.

“They have both correctly pointed out that the U.S. has a lot of fiscal support this year,” Mr. Clarida said, speaking on an Institute of International Finance webcast. “Where I would disagree is whether or not that is primarily going to represent a long-term, persistent upward risk to inflation, and I don’t think so.”

Mr. Clarida said that there’s a lot of room for the economy to recover — some 9.5 million jobs are missing compared to before the pandemic — and that the effect of the government’s relief spending will diminish over time. He also pointed out that while there is pent-up demand on the part of spenders, there is also pent-up supply, because the service sector has been shut for months on end.

“At the Fed we get paid to be attentive and attuned to inflation risks, and we will be,” he said. But he noted that forecasters don’t see “undesirable upward pressure” on inflation over time.

$3 trillion infrastructure package. While Mr. Clarida declined to comment on specific legislation or proposals, he did say broadly that “infrastructure is needed, and the supply-side of the economy will be boosted if that money is well spent and targeted.”

View Source

Filed Under: BUSINESS Tagged With: Biden administration, Economy, Federal Reserve System, Government, Inflation (Economics), Jobs, Money, PAID, Summers, Lawrence H

Primary Sidebar

More to See

Game Plan Launches Groundbreaking College Athlete Career Development ‘Academies’ Program

GREENVILLE, N.C.--(BUSINESS WIRE)--Employers aiming to win the war on talent have a new “A” team to tap into: college and professional athletes. … [Read More...] about Game Plan Launches Groundbreaking College Athlete Career Development ‘Academies’ Program

Mortgage demand sinks even as rates drop

People wait to visit a house for sale in Floral Park, Nassau County, New York.Wang Ying | Xinhua News Agency | Getty ImagesMortgage rates dropped for … [Read More...] about Mortgage demand sinks even as rates drop

Mortgage Rates May Stay on the Up Escalator in July

Mortgage rates are likely to rise in July, extending a seven-month streak. High inflation, and the Federal Reserve's efforts to control it, have … [Read More...] about Mortgage Rates May Stay on the Up Escalator in July

Copyright © 2022 · Republica Press · Log in · As an Amazon Associate we earn from qualifying purchases.

Terms and Conditions - Privacy Policy