National Economic Council Director Brian Deese said on Wednesday that the United States can address high inflation by passing more spending bills.
The Consumer Price Index (CPI) rose 9.1% between June 2021 and June 2022, according to a report from the U.S. Bureau of Labor Statistics. During an interview with CNBC host Carl Quintanilla, Deese urged Congress to address the supply-side issues contributing to higher inflation by passing semiconductor manufacturing incentives.
However, Quintanilla pressed Deese on the notion that higher spending would resolve the highest inflation in over 40 years, which comes on the heels of $6 trillion in federal stimulus packages enacted in response to COVID. “That brings us right back to the circular argument, Brian, that more spending is not what you typically do in the face of high inflation. How do we break out of that circle?” Quintanilla asked.