Inflation is primarily being driven by supply chains, oil shock, and a shift among American consumers
Jim Tankersley 23 – a White House correspondent (“Republicans Say Spending Is Fueling Inflation. The Fed Chair Disagrees.”, New York Times, 03-23-2023, https://www.nytimes.com/2023/03/23/us/politics/republicans-inflation-federal-reserve-powell.html, Date Accessed 7-7-2023) //TCM
“You have to look at the fiscal impulse from spending,” Mr. Powell said on Wednesday, referring to a measure of how much tax and spending policies are adding or subtracting to economic growth. “Fiscal impulse is actually not what’s driving inflation right now. It was at the beginning perhaps, but that’s not the story right now.” Instead, Mr. Powell — along with Mr. Biden and his advisers — says rapid price growth is primarily being driven by factors like snarled supply chains, an oil shock following Russia’s invasion of Ukraine and a from spending money on services like travel and dining out to goods like furniture. Mr. Powell has also said the low unemployment rate was playing a role: “Some part of the high inflation that we’re experiencing is very likely related to an extremely tight labor market,” he told a House committee earlier this month.