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High Prices Are ‘a Challenge’ But There Are ‘a Lot of’ Indications ‘People Are Optimistic’

White House Council of Economic Advisers Heather Boushey said in an interview with Bloomberg TV on Friday that rising prices were a “challenge” and that “it took a while for things to become more stable” after the pandemic. Ta. I think that was tough on people. “But there’s a lot of economic news that shows people are optimistic.”

Bushey said: [relevant remarks begin around 1:11:30] “When there is inflation, everything goes up in price. And you are right, even if the pace of price increase is slow.[s] Even if time passes, the price will not come back. We’re seeing some cases where prices are coming down right now, which is important. Last week, during Thanksgiving week, we talked a lot about how the cost of buying Thanksgiving dinner is lower than it was last year. This is certainly good news for families and gives them a little breathing room. Of course, energy prices are down, with gas prices down $1.77 from their peak at the height of the energy crisis caused by Putin’s unprovoked war in Ukraine. So while it’s good news for consumers who are actually seeing prices come down, challenges remain. ”

She continued: “One of the things we really have to focus on is the other side of the equation. People have jobs. We want to see real wage increases, but of course, We have seen that over the past six months. So families can rely on that income. The pace of inflation has slowed down, so they are able to earn additional income that is above the pace of inflation. And it gives families a little more leeway. Let me say one more thing: I think it’s important for the president to focus on what he can do to lower the prices that families face. For example, one of the early things the president did was to allow people to buy hearing aids over the counter…his competitive agenda. It’s a way to lower the prices we face for things that are important. For all the work the president has done to make the internet affordable and ensure every family has access. [the] internet. So in addition to reducing the overall pace of inflation, there are many, many different examples where presidents have been able to lower prices through specific policy actions. ”

Co-host Romaine Bostic said, “Some things the president has done, some things the president has communicated. I think you can see trends. But I know that for a lot of people, they’re just looking at absolute price levels. And if you go to them and If you ask the proverbial question, “Are you better now than you were four years ago, or even a year ago?”, rightly or wrongly, most people will answer “no.” ”

Mr. Bushey replied: “I think of it in two big buckets. Number one, the pandemic was really difficult. And it caused this weird recession. It’s not a recession. A recession with inflation is really driven by these supply chain challenges, the challenges of people being sent home and then not being able to get what they need, and their lives being disrupted. All that has changed. And coming out of this pandemic, things became more expensive and things took longer to get to a more stable state. I wonder how long it took and I’m sure it was tough for you all. I think it was easy to turn things off, but much harder to sort out all the mess in turning everything back on.”

she continued. “But the fact that so many people are entering the workforce, we have historically high labor force participation rates, people have jobs, people are out, people are starting new jobs. I’m optimistic about the business. 2023 is likely to be her third biggest year for small business establishments. This is a lot of economic news that shows people are optimistic. And that’s not to say rising prices aren’t difficult. Rising prices are certainly difficult, but overall these are difficult times. And I think as people get back to their new rhythm, we’ll see the benefits of that. And what’s remarkable is that these historically large-scale investments are occurring in communities across the country. People will be able to drive across the repaired bridge. ”

“The last Congress was a historic one,” Bushey said. “The president was able to pass historic, economic-transforming legislation, much of it in a bipartisan manner. We’re starting to see it across the country. … So it’s going to take some time to change the economy, especially after a historic pandemic, but the President, through this historic act of Congress, we’re going to I think we have a lot of concrete things to point to. Last Congress.”

to follow Ian Hanchett’s Twitter @Ian Hanchett

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