Biden Econ Adviser: diff between inflation & price level, need time to acclimate to new price level

White House Council of Economic Advisers Chairman Jarred Bernstein seems to laments there’s a lag in the public psyche on inflation that they needed “enough time to acclimate to the new price level” and there’s a “difference between inflation and the price level and how people feel about that.”

“When I started driving, gas was 60 cents a gallon, but I don’t walk around annoyed that gas isn’t 60 cents a gallon because, while prices have gone up, incomes have gone up more. That’s where we are. Inflation is back down. Prices, the price level remains too high from the perspective of consumers and voters.”

https://www.facebook.com/HygoNewsUSA/videos/1655458011668183

Biden Econ Adviser: diff between inflation & price level, needed time to acclimate to new price level

Key Points

White House Council of Economic Advisers Chairman Jarred Bernstein seems to laments there’s a lag in the public psyche on inflation that they needed “enough time to acclimate to the new price level” and there’s a “difference between inflation and the price level and how people feel about that

• ”

“When I started driving, gas was 60 cents a gallon, but I don’t walk around annoyed that gas isn’t 60 cents a gallon because, while prices have gone up, incomes have gone up more

• Prices, the price level remains too high from the perspective of consumers and voters

Transcript Highlights

The following is transcribed from the video audio:

• We needed to get inflation down because you’ll never get, people will never be able to acclimate to the higher price level unless inflation comes back down to around 2%
• Getting inflation back down to target was very much an important part of agenda
• But that just means prices are rising more slowly
• And in fact, to have a broad decline in the price level, you would need a deep recession that nobody wants
• So what you need to happen is for incomes to catch up
• And I’ve spoken about this from the podium before
• The price level remains too high from the perspective of consumers and voters
• And that’s a big part of the answer to your question
• This long memory that people have on price levels
• Do you feel like you, the president’s economic team, the president himself, could have done anything differently over the last few years to better address that, better meet people where they are

Full transcript: 641 words transcribed via Whisper AI.