PolitiFact rates Jen Psaki comments about inflation and Biden’s spending bill as false

PolitiFact rated White House Press Secretary Jen Psaki’s claims that no economist expects inflation from President Biden’s spending agenda to be false.

During a press briefing on November 15, Psaki claimed that no economist thinks that Biden’s Build Back Better bill would boost inflation. She told reporters that “no economist out there is projecting that this will have a negative impact on inflation.”

Psaki’s claim comes at a time when many are concerned about inflation in the U.S., which is at its highest level in 30 years.

The Build Back Better bill plans to spend $1.75 trillion on clean energy initiatives, child care, extended tax credits, paid family leave and hearing aids for Medicare beneficiaries. Along with Psaki, the White House claims the bill will “ease long-term inflationary pressures.”

PolitiFact claims that Psaki is wrong in claiming that no economist foresees inflation as a result of the bill.

“Is it really true that there’s not a single economist who thinks the bill will boost inflation? No,” wrote PolitiFact on Thursday. " Numerous economists, including some who are supportive of the White House’s agenda, have gone on the record saying there probably will be inflationary effects, especially in the near term, if the bill is passed.”

Earlier this month, Obama’s former economic advisor Larry Summers said the White House is misreading inflation. “I think we’re speeding down the road at a really rapid rate,” he said.

"Anyone arguing that the bill is inflationary can point to any standard economic textbook: An increase in government spending should increase demand and thereby increase inflation,” said John Leahy, a professor of macroeconomics and public policy at the University of Michigan.

Jason Furman, chair of the Council of Economic Advisors under Obama, said "it’s more likely a small positive for inflation in 2022, because it’s preventing a big reduction in spending that would otherwise have happened that year."

“The broad consensus among analysts has been that the bill’s inflationary impact will be modest and brief, and that over the longer term, the bill’s provisions should put little to no upward pressure on inflation,” wrote PolitiFact.