A former Barack Obama aide has blasted Joe Biden for making “little progress” to fix America’s “overheated” economy. Jason Furman, who served as chair of the Council of Economic Advisers between 2013 and 2017, also warned inflation is unlikely to come down to the Federal Reserve’s policy target.
Furman said: “The economy is very overheated.
“We have made little if any progress on inflation.
“There is little if any reason to expect a large slowdown going forward.”
In a lengthy Twitter thread, Furman attached several graphs which addressed core personal consumption expenditure inflation.
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He added: “In recent months goods prices have fallen, that likely won’t continue.
“And the extremely tight labour market has lagged effects on inflation.
“Six percent inflation is much more likely than two percent inflation.”
The intervention comes as a blow to the 80-year-old Commander-in-Chief who made much of America’s economic situation in his recent State of the Union address.
Inflation continued to cool for a seventh consecutive month in January, with the consumer price index (CPI) rising by 6.4 percent.
CPI had peaked at a four-decade high of 9.1 percent last June, figures from the Bureau of Labor Statistics have revealed.
In his State of the Union address, Biden claimed: “Two years ago, the economy was reeling.
“I stand here tonight, after we’ve created, with the help of many people in this room, 12 million new jobs — more jobs created in two years than any President has created in four years — because of you all, because of the American people.”
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He added: “Here at home, gas prices are down $1.50 from their peak.
“Food inflation is coming down — not fast enough, but coming down.
“Inflation has fallen every month for the last six months, while take-home pay has gone up.”
However, a burgeoning labour market could stifle further decreases after the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.
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