The Biden administration misread the rising threat of inflation for a variety of reasons, according to several economists and current and former government officials.
Those reasons include Fed influence across the administration, the folly of traditional economic forecasting, political pressure to spend big and a lack of urgency in deciding who would run the Federal Reserve, they said.
“It’s always going to be an issue in any White House, how the policy and politics interact,” said a former Fed official. “I just think they miscalculated.”