Fmr. Obama Counselor Rattner: Post-War Price Hikes Wouldn't Be as Bad If We Didn't Already Have Some Inflation Due to Stimulus Checks

On Wednesday’s broadcast of MSNBC’s “Morning Joe,” MSNBC Economic Analyst Steve Rattner, who served as counselor to the Treasury Secretary in the Obama administration, said the Biden administration deserves some blame for inflation because they “sent out a whole bunch of stimulus checks” even though people knew more stimulus checks were “pretty much the last thing the economy needed” and that while the war in Ukraine has added to inflation, “It would have been better if we hadn’t already started some inflation going.”

After saying that “You do have to fault, a bit, the Biden administration” for inflation, Rattner stated, “I think the principal responsibility lies with the Fed. But the administration did get the first piece of BBB, they got the $1.9 [trillion] American Rescue Plan, which sent out a whole bunch of stimulus checks at a time when, we, even back then, knew that pretty much the last thing the economy needed was more — were more stimulus checks. So, I do think there is some responsibility on the part of the Biden administration. But as I said, the war in Ukraine was definitely an unanticipated consequence. It would have been better if we hadn’t already started some inflation going. But yes, definitely Ukraine was — is a principal culprit.”

Follow Ian Hanchett on Twitter @IanHanchett