Powell is right, but pre-invasion inflation was due to COVID

On Wednesday’s show of “The Lead” on CNN, President Joe Biden’s senior adviser Gene Sperling agreed with Federal Reserve Chairman Jerome Powell’s statement that there was high inflation before that Russia would invade Ukraine and argued that the inflation that existed before the war in Ukraine was ‘related’ to the coronavirus pandemic because the pandemic caused the economy to shut down and restart, created supply chain issues and prevented those issues from being fixed, and led to production stoppages and blockages in Asia.

Sperling responded to Powell’s comments by stating, “Jake, that’s clearly correct, and it doesn’t contradict anything that president has said. The shutdown of the global economy, the startup of the global economy, the supply chain stresses that happened, you remember the impact Delta had in preventing this supply chain correction of supply, the shutdown of semiconductor production in Asia, the effect that has had on global automotive production, lockdowns in China, all of those things have affected inflation. And of course this president was there with a supply chain task force a year ago. So, of course, there was pandemic-related inflation that took place before that.

Follow Ian Hanchett on Twitter @IanHanchett


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