Kamala Harris needs to 'acknowledge' the inflation impact in US

As President Biden steps down from his re-election campaign and endorses Vice President Kamala Harris, the battle against inflation continues in the US. Evercore Chairman Emeritus Ralph Schlosstein joins Market Domination to discuss the current inflationary environment.

Schlosstein emphasizes that inflation "touches every single American," a reality that can be difficult to fully grasp even when wages are trending upward.

Regarding Harris's approach, Schlosstein suggests she will need to acknowledge "that life is harder" for many Americans and convey a clear plan "to bring the cost of living down." He commends the Biden-Harris administration for how they handled the inflationary environment, particularly for not placing blame on the Federal Reserve— calling the central bank "a fundamentally core tenet of the success of our economy."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination and be sure to check out the full interview with Ralph Schlosstein here.

This post was written by Angel Smith

Video Transcript

Even though economists you talk to and and folks like yourself will say that the economy is strong right now, the American people, many of them don't see it that way because of the inflation issue and the inflation issue alone.

How does the Harris campaign push past that and improve that perception?

Well, one of the things I've been saying for quite a while, and I had the, um, so much older than both of you.

I had the experience of working in the White House during the Carter administration when we had high high inflation.

And one of the things that I think just is hard to recognise if you didn't live.

Live through that experience is that inflation is something that touches every single American.

And when you go into that grocery store and eggs are 50% higher and milk is 40% higher and beef or chicken is whatever it is higher, uh, you don't necessarily put that together with Well, I'm making a little more money, uh, as well and gas the things that are very visible and that you touch every week or every day.

Uh, are more expensive, and that's very different.

from unemployment, which touches, uh, you know, it's a a portion of the population, and when you include their families and friends, a bigger portion of the population.

But inflation hits every single person.

And unfortunately, it hits the middle income and the lower middle income and the the the poor.

Worst of all, because they spend a bigger portion of their income on necessities, Well, is it just a matter of then acknowledging that I think there has to be, honestly, an acknowledgment of it, that its life is harder, Uh, that it's more challenging to put food on the table and gas in the tank?

Uh, and that there's a major effort underway to bring the cost of living down, uh, and to to strengthen wages.

Uh, you know, some of this, uh you know, I kind of laugh that, uh, not laugh.

But, you know, I in all honesty, it's not fair to blame President Trump for the unemployment that resulted from covid.

Uh, and it's equally not fair to blame President Biden and Vice President Harris for the inflation that occurred as a result of, uh, covid.

Uh, and I think they've done a pretty good job of getting after it.

Uh, the Fed has done a terrific job after they got past this transitory, uh, moment.

Uh, and I think the president and the and the vice president deserve a lot of credit for not once complaining about the Fed.

Uh, they've never attacked the independence of the Fed, and that is a fundamentally core tenet of the success of our economy.