White House adviser says Biden isn't 'permanently screwed' by inflation anger. Here's why.

MW White House adviser says Biden isn't 'permanently screwed' by inflation anger. Here's why.

By Chris Matthews

Administration touts falling prices for some key products

A top economic adviser to President Joe Biden said that he expects American voters to become less concerned over the high cost of living over time if policymakers can keep the inflation rate under control.

Jared Bernstein, chair of the White House Council of Economic Advisers, said Tuesday, "I put a lot of weight on the price level, not just inflation," referring to the difference between the cost of a good and the rate at which that product gets more expensive over time.

While inflation rates have come down dramatically since their 2022 highs, prices for many everyday goods remain more expensive than before the COVID-19 pandemic.

Bernstein made the comment during an event staged by the Brookings Institution in Washington, D.C., as he attempted to explain why polls show Americans are feeling negatively about the economy despite falling inflation, low unemployment and rising wages.

"If people remember that eggs used to cost $1.80, and now eggs cost $2.50, the fact that they are down from $5 doesn't necessarily assuage" their anger over higher prices, he said.

Bernstein added that he doesn't think this means the Biden administration is "permanently screwed" since prices for most items will never return to their pre-inflation levels.

He argued that Americans will eventually adjust to higher prices, "or people like me would be walking around unhappy that gas doesn't cost 60 cents per gallon, because when I started driving, that's what it cost."

The Biden administration has made controlling the cost of living a central pillar of its 2024 presidential campaign, and Bernstein noted that there has been some progress in bringing down grocery prices.

The CEA released a report last week that showed grocery-price inflation is "way down from its recent peak," and that wage increases have helped offset the burden of higher grocery prices.

It also noted that several large grocery chains have "recently announced price cuts," including Aldi, Amazon $(AMZN)$, Target $(TGT)$, Walgreens $(WBA)$ and Walmart $(WMT)$.

Read more: Biden White House applauds Walmart, Amazon for grocery discounts amid inflation fight

The report said that Americans have seen declines in prices for apples, ham, cheese, potatoes and coffee, among other items. Overall grocery prices have risen by 1% over the past year, according to the Bureau of Labor Statistics.

-Chris Matthews

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June 25, 2024 16:18 ET (20:18 GMT)

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