Hassett Attributes Part of U.S. Inflation Rise to Pandemic Spending
Inflation was about 1.5% when Trump’s first term ended before approaching 9% in summer 2022.
White House National Economic Council Director Hassett said continued pandemic-related spending under the Biden administration contributed to higher U.S. inflation, which remains among the economy’s current problems.
Hassett said Tuesday that pandemic aid during President Donald Trump’s first term was designed to close an economic gap. He said the Biden administration continued spending and directed funds to other areas, leaving the economy to deal with the effects of that additional spending.
Inflation stood at about 1.5% when Trump’s first term ended, Hassett said. The Biden administration signed the $1.9 trillion American Rescue Plan in March 2021.
Some economists have said the measure worsened inflation, but its precise effect remains disputed. U.S. inflation approached 9% in summer 2022 before gradually declining.
