Leon Panetta urges Biden to admit he made a mistake on inflation and take decisive action
Obama defense secretary says White House should own up to miscalculations on inflation being transitory and establish an effective strategy to combat it on 'Your World.'
The Washington Post editorial board published an op-ed Wednesday criticizing President Joe Biden for being dishonest about inflation. The article, titled "Biden is finally getting honest about inflation," blasted the president’s rhetoric on inflation as "unwise" and Treasury Secretary Janet Yellen’s admission of error on the subject "overdue".
"It was clearly unwise of President Biden to brush off rising inflation for so long and then try to blame greedy corporations, among others, for the problem," wrote the board.
"Presidents don’t have nearly as much control over the economy as people think, but Mr. Biden should have stepped up and addressed inflation much sooner than he and his team did," they continued.
LEON PANETTA CALLS ON BIDEN TO ADMIT HE ‘MADE A MISTAKE’ ON INFLATION
President Joe Biden listens as he meets virtually with infant formula manufacturers from the South Court Auditorium on the White House complex in Washington, Wednesday, June 1, 2022. ((AP Photo/Susan Walsh))
The board also praised Janet Yellen for what they described as a "refreshing" but "overdue" admission that she was incorrect to assert in 2021 that inflation would be "transitory".
"Last summer, Yellen was one of many economists and White House officials downplaying inflation as a "small risk" to the economy. It’s now clear just how mistaken they were," The Post’s editorial board wrote.
"Inflation has been at a 40-year high for months, and there is little sign of relief on sky-high gas, food or rent prices."
The board argued that while this newfound honesty from the White House will not solely solve inflation, "it helps restore some credibility to the White House on the No. 1 issue on most people’s minds."
KUDLOW REJECTS BIDEN'S OP-ED ON ECONOMY: OBVIOUSLY COMMITTED TO GREEN REVOLUTION
U.S. President Joe Biden (C) meets with Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, in the Oval Office at the White House on May 31, 2022 in Washington, DC. The three met to discuss the Biden Administration's plan to combat record-high inflation. (Photo by Kevin Dietsch/Getty Images)
Despite this, they predict economic suffering is to come.
"There will be pain," the board wrote. "Lowering inflation will require slowing the economy. The housing market is an early warning sign of what will likely play out in many industries as buyers grow more picky and sellers are increasingly forced to cut prices. Russia’s war in Ukraine and ongoing hiccups in the supply chain are exacerbating the problems, especially for gas and food."
The board criticized Biden’s recent Wall Street Journal op-ed, in which he promised to address rising inflation.
"Unfortunately, nearly all the ideas he mentioned — clean energy, infrastructure, building more homes — would take years to have an impact," the board wrote.
American inflation rising (istock)
The board also criticized Biden’s $1.9 trillion rescue package in March 2021 as "too large".
The board called for what they described as short term solutions to inflation, such as "reducing or eliminating some of the tariffs President Donald Trump put in place, speeding up legal immigration to help get more workers into the economy, and pursuing a comprehensive energy policy that includes domestic production."
Others, such as Washington Post columnist Josh Rogin, have argued that lifting Trump’s China tariffs would be ineffective and damage America’s foreign policy objectives.