Stimulus and Inflation: A Complex Interplay

Inflation in the United States has been getting worse. In December, prices were up 7 percent from the previous year — the fastest rise in 40 years. 

Americans feel terrible about the economy, imperiling the Democratic Party’s chances of holding on to power in Washington in this year’s midterm elections.

While disruption caused by the pandemic is a key cause of higher prices — a situation that predates the Biden administration — a question remains: How much have the Democrats’ own policies contributed to the problem?

Guest: Ben Casselman, an economic and business reporter for The New York Times.

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Background reading: 

• Prices in the United States are rising rapidly, wages are growing and consumers are glum as a fraught economic moment poses big challenges for policymakers.
• President Biden is suffering in the polls as high inflation saps confidence in the economy, even as growth comes in strong.

For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday. 

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