<p>Two former top economic officials for former President Barack Obama are warning that President Joe Biden&#8217;s massive social spending bill, known as the Build Back Better Act, will increase inflation at a time when rates are already skyrocketing and will add hundreds of billions of dollars a year to the national debt.</p>
<p>Larry Summers, former Treasury Secretary for Clinton and Obama administration official, and Steven Rattner, Obama’s former auto czar, made the warnings in an interview last week with Bloomberg News.</p>
<p>When asked during the interview if Biden&#8217;s multi-trillion-dollar leftist spending bill would worsen inflation, Summers responded, &#8220;I think the inflation rate would be slightly higher in 2022 and 2023 with the Build Back Better than it would be without the Build Back Better.&#8221;</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">Obama and Clinton economist Larry Summers: Prices will be &quot;higher in 2022 and 2023 with [Biden&#39;s] Build Back Better.” <a href="https://t.co/golNm5m7ls">pic.twitter.com/golNm5m7ls</a></p>
<p>&mdash; RNC Research (@RNCResearch) <a href="https://twitter.com/RNCResearch/status/1469522073563418634?ref_src=twsrc%5Etfw">December 11, 2021</a></p></blockquote>
<p>Summers said that the latest Consumer Price Index (CPI), which was 6.8%, &#8220;confirmed&#8221; that the inflation that has erupted under Biden is &#8220;not transitory,&#8221; like the administration has tried to claim.</p>
<p>&#8220;And I think everybody recognizes now with the statements from Chairman Powell, with the statements from Secretary Yellen, that this isn&#8217;t going to just go away of its own accord,&#8221; Summers <a href="https://www.youtube.com/watch?v=DlF3jPGJZFQ">warned</a>. &#8220;That the Fed’s going to have to take substantial action to control inflation &#8230; we put in motion for the first time in 40 years, excessive inflation, caused by overheating of the economy, and that&#8217;s going to have to be worked out of the system and that&#8217;s probably not going to be such an easy thing.&#8221;</p>
<p>Rattner weighed in saying that he &#8220;completely agree[d]&#8221; with Summers&#8217; analysis of the problem and that &#8221; it&#8217;s going to take multiple years certainly to work it out.&#8221;</p>
<p>&#8220;So it is going to be painful. And it&#8217;s going to be painful for growth,&#8221; Rattner said. &#8220;It&#8217;s going to be painful for jobs. And we do have an election coming next year which is going to be complicated.&#8221;</p>
<p>Summers warned that &#8220;we&#8217;re going to entrench inflation way above 2%, perhaps in the four percent or even higher range, unless something happens to break the current mood; to break the current trend.&#8221;</p>
<p>&#8220;And I don&#8217;t think it&#8217;s going to be three rate increases or two rate increases next year,&#8221; Summers said. &#8220;I mean, remember this crucially: monetary policy today is far looser than it was a year ago. Looser is measured by real interest rates; Looser is measured by financial conditions; looser as measured by the size of the Federal Reserve&#8217;s balance sheet. So we&#8217;ve got looser monetary policy even as job vacancies are way up and even as inflation is way up as well.&#8221;</p>
<p>Rattner agreed that if the Fed was serious about getting inflation under control that it was &#8220;going to take a lot more than three rate hikes over some period of time.&#8221;</p>
<p>Rattner warned that Biden&#8217;s Build Back Better Act &#8220;would add $150 to $200 billion a year to the deficit,&#8221; which he noted was a problem because, as another Obama economist, Jason Furman, pointed out, &#8220;you&#8217;ve got over two trillion dollars of dry powder on the sidelines, you know, savings that people have above what would normally be expected and that&#8217;s what&#8217;s coming back into the into the economy now and that&#8217;s what&#8217;s really creating this [inflation] and that&#8217;s still a lot of money left to left to come swirling around this economy.&#8221;</p>

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Obama Economists Warn: Biden’s Build Back Better Will Make Inflation Worse; Stimulus Caused Inflation