Joe Biden sent a message to markets about inflation in the United States

“Most of the price increases we are seeing are predictable and temporary,” he said in a speech to the White House, in which he attributed the situation to the reopening of the economy after the pandemic, which is causing “challenges” in the supply of materials and goods.

“No serious economist” suggests runaway inflation, he said.

“You cannot revive the world economy and hope that such a thing (note: an increase in prices) does not happen”, he added, citing as an example the world shortage of microchips which slowed down “automobile production and temporarily raises the price of cars.”

Biden gave another example: that of wood used to build houses in the United States, the prices of which “rose at the start of the reactivation but, in recent weeks, they have fallen by more than 50%.”

Biden’s statements support those of the Treasury Secretary, Janet Yellen, as well as those of the President of the Federal Reserve, Jerome Powell, who admitted that the scale of the price hike had surprised him but maintains that it will start to ease in a few months.

Powell conceded last week that inflation would remain “high” for the next several months, but said it would subside once “bottlenecks” in materials supply and other temporary problems were overcome. resolved.

Inflation in the United States has skyrocketed in recent months, and the Consumer Price Index (CPI) has risen 5.4% since June 2020, the highest level in 12 months since August 2008.

Los precios al por mayor también han aumentado, con el índice de precios al productor ubicado en 7,3% en los 12 meses terminados en junio, el más alto desde que el Departamento de Trabajo comenzó a medirlo in November 2010, según datos publicados last week.

Biden has once again defended his massive social spending and infrastructure plan, which will go to a first Senate vote on Wednesday.