Obama-Era Economic Official Highlights Discrepancy Between Public, Economists On Trying To Get Prices Back Down

Obama-Era economist Jason Furman questioned whether policymakers should endeavor to return prices to their previous levels after they’ve risen by 20%.

What Happened: In a recent post on X, formerly Twitter, Furman highlighted data from Shiller’s 1997 survey suggesting that while 92% of economists would disagree with such a move, only 10% of the public would do so.

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Why It Matters: This post comes in the wake of ongoing debates and concerns about inflation, with the Personal Consumption Expenditure (PCE) Price Index for August showing mixed results.

The PCE Price Index — the Federal Reserve's preferred inflation gauge — saw the headline PCE rise from 3.4% in July to 3.5% year-over-year in August. Simultaneously, core PCE, which excludes energy and food items, fell from 4.2% to 3.9% year-over-year in the same period. These figures are causing uncertainty over potential changes in the Fed’s approach to interest rates.

Economists have cautioned against declaring victory over inflation yet. Rising oil prices and potential consumer slowdown due to tumbling real disposable income can prolong inflation concerns.

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