Fmr. Obama Treasury Counselor Rattner: Fixing Inflation Will Take ‘Years’ and ‘It’s Going to Be Painful for Growth’

On Friday’s broadcast of Bloomberg TV’s “Wall Street Week,” Steve Rattner, who served as counselor to the Treasury Secretary in the Obama administration, said that it will “take multiple years” to work inflation out of the economy, and “it is going to be painful. And it’s going to be painful for growth. It’s going to be painful for jobs.”

Rattner said, “I think you have to recognize it’s a problem that was not created in two months, it was a problem created over the last two years. And so, it’s going to take multiple years, certainly, to work it out. I, in no way, want to predict that we’re going back to where we were in the late 70s, but I was sitting in the Washington Bureau of The New York Times when Paul Volcker announced his new inflation policy and I watched all that happen. And it took multiple, multiple years and a terrible recession to get it out of the system. So, it is going to be painful. And it’s going to be painful for growth. It’s going to be painful for jobs. And we do have an election coming next year, which is going to be complicated.”

Follow Ian Hanchett on Twitter @IanHanchett

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