White House Budgets for an Unrealistic Inflation Slowdown
- Economic projections were done in November, now outdated
- White House budget sees inflation slowing to 2.3% next year
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President Joe Biden’s proposed budget for the coming year is based on economic assumptions the White House itself recognizes are outdated, including a forecast for inflation to cool next year to about a quarter of its current, four-decade-high pace.
The economic projections were finalized in November, as is typical for the White House budget process. Since then, however, the economic outlook has altered significantly, with consumer-price inflation surging more than one percentage point, to 7.9% in the latest release -- and that was prior to Russia’s invasion of Ukraine and gas prices hitting a record high.