Brian Deese Claims That US Has A “Uniquely Strong” Economic Position

Despite rising prices and empty shelves at stores around the country, Deese said that the United States is in a “uniquely strong economic position.” During the white house meeting, Economic Advisor Brian Deese was more concerned about the slight growth the US saw during the pandemic. After June 1982, the highest inflation the US has seen is 7%. According to Deese, the price hikes are a “global phenomena” that “reflect the nature of the worldwide difficulty of recovering from a pandemic.” He sidestepped a question on why he and other economists were mistaken in anticipating that inflation would be brief early last year instead of pointing to different estimates and forecasts that turned out differently than expected but for the better, including employment.

Deese spun a narrative in which the United States outperformed the rest of the world economically last year, claiming the lowest unemployment rate, the most jobs generated, and the highest economic growth in over 40 years. However, he forgot to mention that such data were obtained after the early days of the COVID-19 outbreak wreaked havoc on the economy.

It was a statement to save face because 7% is horrifying for the working class. Deese mentioned that we should look at monthly changes as they are more encouraged to make this figure.

Jerome Powell, Federal Reserve Chair, testified that there is not much that monetary policy can help in this situation because the interest rates are already at an all-time low for quite a time now. He said that the economy had grown significantly despite the continuous pandemic, resulting in regular supply and demand mismatches and bottlenecks, and higher inflation. We all know that rising inflation has a cost, especially for people who can’t afford increasing necessities like transportation, food, and housing.