The next 6 months will challenge White House to 'stay firm' on no-fear inflation stance, economist says


The Biden administration still firmly believes the United States is not headed toward a "sustained pick-up" in inflation. Treasury Secretary Janet Yellen is closely monitoring the situation and hasn't found any surprising data that's cause for panic. But, with prices likely to continue to rise in the near future, it might become more difficult for the White House to convince Americans that that's the case, Bloomberg reports.
"We still have a weird six months ahead," Josh Bivens, the director of research at the left-leaning Economic Policy Institute, told Bloomberg. "It will be a real challenge for the administration and the [Federal Reserve} to stay firm on their stance."
Indeed, there's reportedly some concern within the administration about political fallout, even if inflation is ultimately temporary, as Biden's economics team believes. One of the most consequential risks is how a potential "inflationary psychology" — in other words, anxious consumers — will affect support for Biden's major spending proposals, which could total around $4 trillion, an unnamed "ally" of the president told Bloomberg. Read more about how the Biden administration is responding to inflation fears at Bloomberg.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
6 elegant Queen Anne Victorian homes
Feature Featuring original diamond-glass doors in New York and a registered historic landmark in Arkansas
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
US overdose deaths plunged 27% last year
speed read Drug overdose still 'remains the leading cause of death for Americans aged 18-44,' said the CDC
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling