Biden Adviser: We’ll See ‘Moderation’ in Price Increases ‘Through the Second Half of Next Year’ if We Keep Acting

QUINTANILLA Joining us to ░░░░░░░░ about that and a ░░░░░░░░ more is NEC Director ░░░░░░░░ Deese at the White ░░░░░░░░ Brian good morning Good ░░░░░░░░ have you with us ░░░░░░░░ Thanks for having me ░░░░░░░░ You know we talk ░░░░░░░░ lot on our air ░░░░░░░░ stocks at record highs ░░░░░░░░ record numbers of jobs ░░░░░░░░ and jobless claims at ░░░░░░░░ lowest levels since 1969 ░░░░░░░░ it s clearly not ░░░░░░░░ up at least in ░░░░░░░░ polling data Why do ░░░░░░░░ think that is DEESE ░░░░░░░░ I m not a ░░░░░░░░ but I do think ░░░░░░░░ the American people have ░░░░░░░░ through a tough couple ░░░░░░░░ years and understandably are ░░░░░░░░ and anxious about the ░░░░░░░░ situation I also I ░░░░░░░░ that we re in ░░░░░░░░ very different situation than ░░░░░░░░ were a year ago ░░░░░░░░ there are lots of ░░░░░░░░ to believe that we ░░░░░░░░ continue making strong economic ░░░░░░░░ So our focus is ░░░░░░░░ on delivering tangible results ░░░░░░░░ I think at the ░░░░░░░░ of the day what ░░░░░░░░ American people are focused ░░░░░░░░ is less rhetoric or ░░░░░░░░ political talking points and ░░░░░░░░ and instead what we ░░░░░░░░ get done So if ░░░░░░░░ look at something very ░░░░░░░░ like the challenges of ░░░░░░░░ supply chain earlier this ░░░░░░░░ there was a lot ░░░░░░░░ concern that packages wouldn ░░░░░░░░ get delivered on time ░░░░░░░░ the holiday season spent ░░░░░░░░ lot of time working ░░░░░░░░ the ports with businesses ░░░░░░░░ labor and otherwise trying ░░░░░░░░ help unstick some of ░░░░░░░░ bottlenecks and have made ░░░░░░░░ lot of progress on ░░░░░░░░ front That s the ░░░░░░░░ of practical focus we ░░░░░░░░ trying to bring here ░░░░░░░░ solve problems that are ░░░░░░░░ to the practical challenges ░░░░░░░░ people are facing in ░░░░░░░░ lives and certainly prices ░░░░░░░░ costs are high up ░░░░░░░░ QUINTANILLA Yeah I wonder ░░░░░░░░ you think it s ░░░░░░░░ comment on just how ░░░░░░░░ an inflationary mindset is ░░░░░░░░ mentioned supply chain The ░░░░░░░░ PMI data yesterday showed ░░░░░░░░ delays lowest since May ░░░░░░░░ lowest in 10 months ░░░░░░░░ ve got some encouraging ░░░░░░░░ paid data a few ░░░░░░░░ ago How much is ░░░░░░░░ on this trend this ░░░░░░░░ trend continuing DEESE Well ░░░░░░░░ think we re in ░░░░░░░░ very unique moment and ░░░░░░░░ the economy and the ░░░░░░░░ are inextricably linked That ░░░░░░░░ been true for some ░░░░░░░░ and it certainly has ░░░░░░░░ what we have been ░░░░░░░░ for some time So ░░░░░░░░ think that it s ░░░░░░░░ to extrapolate on current ░░░░░░░░ in a very precise ░░░░░░░░ But I do think ░░░░░░░░ there are reasons to ░░░░░░░░ that we are getting ░░░░░░░░ way through some of ░░░░░░░░ supply chain challenges Obviously ░░░░░░░░ Omicron variant poses new ░░░░░░░░ But if you look ░░░░░░░░ the goods movement flow ░░░░░░░░ the logistics supply chain ░░░░░░░░ are lot of reasons ░░░░░░░░ believe that as we ░░░░░░░░ out of this holiday ░░░░░░░░ we have been able ░░░░░░░░ address some of those ░░░░░░░░ bottlenecks So certainly we ░░░░░░░░ going to stay focused ░░░░░░░░ it and not downplay ░░░░░░░░ dismiss the risks that ░░░░░░░░ on the horizon but ░░░░░░░░ the same time a ░░░░░░░░ of reason to believe ░░░░░░░░ we can work through ░░░░░░░░ issues over the next ░░░░░░░░ of quarters and get ░░░░░░░░ back to more normal ░░░░░░░░ rhythm FABER Well Brian ░░░░░░░░ that I m just ░░░░░░░░ then what are your ░░░░░░░░ for inflation It does ░░░░░░░░ to measure very prominently ░░░░░░░░ the psyche of voters ░░░░░░░░ you have the midterms ░░░░░░░░ up only what nine ░░░░░░░░ months from now So ░░░░░░░░ and what is inflation ░░░░░░░░ to look like let ░░░░░░░░ call it by next ░░░░░░░░ DEESE Well I think ░░░░░░░░ we continue to take ░░░░░░░░ right now what we ░░░░░░░░ do is we continue ░░░░░░░░ propel forward a strong ░░░░░░░░ recovery while reducing those ░░░░░░░░ pressures And I think ░░░░░░░░ we can do we ░░░░░░░░ see what most independent ░░░░░░░░ project which is moderation ░░░░░░░░ the price increases through ░░░░░░░░ second half of next ░░░░░░░░ Look we have some ░░░░░░░░ the strongest economic growth ░░░░░░░░ this economic recovery that ░░░░░░░░ ve seen in decades ░░░░░░░░ have the strongest labor ░░░░░░░░ that we have seen ░░░░░░░░ quite some time And ░░░░░░░░ have household incomes and ░░░░░░░░ balance sheets that are ░░░░░░░░ a historically strong position ░░░░░░░░ when taking into account ░░░░░░░░ increases So we have ░░░░░░░░ unique opportunity unique to ░░░░░░░░ United States other industrialized ░░░░░░░░ are not in this ░░░░░░░░ to address these problems ░░░░░░░░ a position of relative ░░░░░░░░ strength I think if ░░░░░░░░ do that and we ░░░░░░░░ that over the next ░░░░░░░░ of quarters we ll ░░░░░░░░ that moderation that again ░░░░░░░░ independent forecasters are projecting ░░░░░░░░ Build Back Better seems ░░░░░░░░ have faded a bit ░░░░░░░░ Sen Manchin s opposition ░░░░░░░░ but certainly there are ░░░░░░░░ of people who say ░░░░░░░░ s not dead yet ░░░░░░░░ who are in opposition ░░░░░░░░ at least had concerns ░░░░░░░░ did cite inflation as ░░░░░░░░ of the key reasons ░░░░░░░░ why they were concerned ░░░░░░░░ do you answer those ░░░░░░░░ And by the way ░░░░░░░░ you give us an ░░░░░░░░ in terms of your ░░░░░░░░ as to whether Build ░░░░░░░░ Better is going to ░░░░░░░░ back DEESE We re ░░░░░░░░ to getting Build Back ░░░░░░░░ done and confident that ░░░░░░░░ will do so We ░░░░░░░░ a lot of work ░░░░░░░░ do in working on ░░░░░░░░ elements but we re ░░░░░░░░ we re going to ░░░░░░░░ it done And I ░░░░░░░░ your question about inflation ░░░░░░░░ spot on If your ░░░░░░░░ concern is prices and ░░░░░░░░ the American people are ░░░░░░░░ Build Back Better is ░░░░░░░░ direct answer to that ░░░░░░░░ you think about the ░░░░░░░░ cost that a typical ░░░░░░░░ faces housing healthcare prescription ░░░░░░░░ the cost of childcare ░░░░░░░░ Back Better will actually ░░░░░░░░ those costs the investments ░░░░░░░░ help to reduce those ░░░░░░░░ from the family budget ░░░░░░░░ And because it is ░░░░░░░░ for it doesn t ░░░░░░░░ add to aggregate demand ░░░░░░░░ it won t actually ░░░░░░░░ inflationary pressures in the ░░░░░░░░ term So that s ░░░░░░░░ most independent experts who ░░░░░░░░ looked at the bill ░░░░░░░░ that it won t ░░░░░░░░ any inflationary impact in ░░░░░░░░ short term What it ░░░░░░░░ do is reduce price ░░░░░░░░ over the long term ░░░░░░░░ we need to get ░░░░░░░░ Americans back working I ░░░░░░░░ what we re seeing ░░░░░░░░ Omicron right now just ░░░░░░░░ you know reducing the ░░░░░░░░ of childcare is not ░░░░░░░░ about reducing a cost ░░░░░░░░ American people are facing ░░░░░░░░ also helping get more ░░░░░░░░ back to work So ░░░░░░░░ think the economic case ░░░░░░░░ Build Back Better is ░░░░░░░░ clearer in the context ░░░░░░░░ concerns about inflation Practically ░░░░░░░░ we re going to ░░░░░░░░ at it and work ░░░░░░░░ it It s a ░░░░░░░░ process and we re ░░░░░░░░ we re going it ░░░░░░░░ this done BRENNAN Yeah ░░░░░░░░ just to dig into ░░░░░░░░ guess the broader inflation ░░░░░░░░ a little bit more ░░░░░░░░ you talk about some ░░░░░░░░ these actions that the ░░░░░░░░ is taking how do ░░░░░░░░ investigations more regulations in ░░░░░░░░ case energy which I ░░░░░░░░ you ve talked about ░░░░░░░░ recent weeks as well ░░░░░░░░ that deincentivize U S ░░░░░░░░ and gases production how ░░░░░░░░ these actually work to ░░░░░░░░ prices DEESE Well I ░░░░░░░░ you raise the question ░░░░░░░░ energy and it s ░░░░░░░░ good example Obviously the ░░░░░░░░ of oil is set ░░░░░░░░ the global market but ░░░░░░░░ President identified several months ░░░░░░░░ that we had a ░░░░░░░░ of an anti competitive ░░░░░░░░ by international counterparts that ░░░░░░░░ actually keeping oil off ░░░░░░░░ market not commensurate with ░░░░░░░░ speed and the scale ░░░░░░░░ the global economic recovery ░░░░░░░░ he engaged diplomatically in ░░░░░░░░ way that he does ░░░░░░░░ these issues with oil ░░░░░░░░ countries but also oil ░░░░░░░░ countries to try to ░░░░░░░░ insure that OPEC stayed ░░░░░░░░ its cadence of supply ░░░░░░░░ but also bringing consuming ░░░░░░░░ together to coordinate releases ░░░░░░░░ stocks That s a ░░░░░░░░ of activity that we ░░░░░░░░ can be helpful in ░░░░░░░░ these impacts and also ░░░░░░░░ us back to a ░░░░░░░░ where we re actually ░░░░░░░░ the market operate we ░░░░░░░░ having supply meet demand ░░░░░░░░ that market And at ░░░░░░░░ same time we re ░░░░░░░░ to make sure that ░░░░░░░░ regulatory agencies that have ░░░░░░░░ responsibility of protecting American ░░░░░░░░ are keeping a watchful ░░░░░░░░ that nobody is taking ░░░░░░░░ of consumers during this ░░░░░░░░ of uncertainty and price ░░░░░░░░ So that s another ░░░░░░░░ of what we re ░░░░░░░░ as well And I ░░░░░░░░ that those actions are ░░░░░░░░ kind of appropriate steps ░░░░░░░░ can take as we ░░░░░░░░ to try to propel ░░░░░░░░ strong recovery underlying all ░░░░░░░░ that QUINTANILLA Yeah We ░░░░░░░░ to get you back ░░░░░░░░ as soon as we ░░░░░░░░ talk more about energy ░░░░░░░░ chain China trade obviously ░░░░░░░░ packing supply But we ░░░░░░░░ the time as always ░░░░░░░░ to see you Thanks ░░░░░░░░ Happy to do it ░░░░░░░░ QUINTANILLA: “Brian Deese.”