Hassett Blames Biden Stimulus for Persistent US Inflation as Midterms Near

National Economic Council Director Kevin Hassett said the US economy is still absorbing the effects of pandemic-era fiscal stimulus and partly attributed elevated inflation to subsequent large-scale spending under former President Joe Biden. Speaking Tuesday, September 29, 2026, Hassett said the US is "still trying to dig out" from pandemic-era spending, arguing later outlays exceeded the economy's actual needs. Hassett criticized the Biden administration for maintaining pandemic-level spending and redirecting funds elsewhere. His remarks come as the US enters the final stretch before midterm elections, with inflation and cost of living central to partisan debate. Biden signed the $1.9 trillion American Rescue Plan in March 2021; some economists say it expanded demand and worsened inflation amid supply-chain constraints, though the degree remains disputed. US CPI peaked near 9% in summer 2022 and had fallen to about 3% by January 2025, when Trump took office. Renewed energy shocks from the US-Iran conflict and the Russia-Ukraine war are again pressuring prices, adding uncertainty to disinflation as the Fed began a rate-hiking cycle this month.