Hagerty: ‘There Is Still a Great Deal of Inflation Baked in’

During an interview aired on Friday’s edition of the Fox Business Network’s “Maria Bartiromo’s Wall Street,” Sen. Bill Hagerty (R-TN) said that there is “still a great deal of inflation baked in” the economy because of unspent money from the American Rescue Plan that is currently sitting in the coffers of state and local governments, and that when this money is eventually spent by these governments, “it can only do one thing, more upward pressure on prices, more inflation.”

Hagerty stated, [relevant remarks begin around 2:55] “There’s inflation baked into the pipeline because these state and local governments have not yet deployed the funds that — the massive amount of funds that have been shoved into their coffers. Again, this all started back in March of 2021 when the Biden administration and the Democrats, on a wholly partisan basis, shoved through this massive, $2 trillion package. And there is still a great deal of inflation baked in because of the money that still lies in the coffers of these state and local governments that has not yet been put into the economy. When it does come in, it can only do one thing, more upward pressure on prices, more inflation.”

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