Steve Rattner, a former Obama administration Treasury Department official, projected on Thursday that the inflation situation will not be resolved anytime soon.Rattner claimed, "Inflation is here to stay" during an appearance on MSNBC's "Morning Joe," arguing that it will be "the defining issue" in the next midterm elections, making November "a pretty tough one" for Democrats.Mika Brzezinski, co-host, began the discussion by emphasizing her concern about inflation and Democrats' "hanging hat" on being the cure.
"With everything that's going on in the world, I'm not convinced one person, one country, one party can fix this problem," she remarked, before saying that President Biden had been traveling the country to learn from and empathize with Americans who were suffering from the situation. She inquired if inflation was "here to stay" with Rattner.
"Inflation is here to stay," Rattner claimed, claiming that it was "the defining issue in the midterm elections" and that it was threatening the Democrats' control of the House and Senate.
Rattner claimed that inflation may have peaked earlier in the spring, citing charts issued by the Federal Reserve that show the evolution of inflation rates over time, including a minor fall from March to April.However, he emphasized that gas prices have a significant impact on inflation, pointing to record highs in March when inflation reached a 40-year high, but then a tiny drop in April when the inflation rate fell.
He went on to say that if gas prices were excluded from the equation, the April inflation rate would have been 0.4 percent higher than the whopping 8.3 percent recorded.
"Look, the president has been blaming everyone but himself and the Democrats for inflation," Rattner said, saying that the sole factor in Biden's favor is that inflation is a "global phenomena."
He then went over the things that he believes the Biden administration can affect when it comes to inflation.
"We've placed ourselves in a lot of pain with too much stimulus, too enormous budget deficits, too much bond purchasing by the Federal Reserve, too much money printing by the Federal Reserve," Rattner said.
"And look, it's the most important subject, and it's going to be a tough one for Democrats," he concluded.
He went on to say that none of Biden's proposals will have "any substantial impact" on inflation between now and the fall.
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