Marty Walsh, Labor Secretary, stated that inflation is not a concern despite a decade of high price growth.This outlook is consistent with statements made by other administration officials to reduce inflation fears.Walsh said that soaring prices are a result of an economy that is "still in transition" from lockdown.Subscribe to the 10 Things in Politics Newsletter for the latest news in politics and the economy. Loading something is currently loading. Click Sign up to receive marketing emails and other offers from Insider.Everybody has a different opinion about the rise in US prices (also known as inflation) as the economy reopens. It could be spiraling higher, or it could be temporary. It might be here to stay or it could disappear in a matter of months, years, or even hires.Marty Walsh, Labor Secretary, isn't concerned about it, particularly since wages rose again in June."I believe steady wage growth is good news for workers. Insider was told Walsh that inflation is the only thing we don't worry about. We're still in transition so we don't worry about that. So I believe that any time we can push for higher wages, and the president has been vocal about this it's a positive thing for people.This relaxed attitude is despite the fact that prices have risen at an alarming rate since 2008. Popular measures of national inflation rose in spring because Americans bought more items and businesses were struggling to keep up.The White House shares Walsh's view. During a press conference on June 24, President Joe Biden stated that there is an "overwhelming consensus” about inflation. He said that it should "pop-up a bit and then come down." Janet Yellen, Treasury Secretary, stated in May that while inflation is at decade-highs it should not exceed "the end of the year"."The recent inflation that we have seen is temporary," she said. She told lawmakers via a virtual hearing that it's not an endemic phenomenon.The Federal Reserve, an independent branch that is charged with controlling inflation, has seen price growth slow down. Fed Chair Jerome Powell repeatedly described the overshoot in a positive way, calling it "temporary" and pointing to the economic reopening. He stated that it is "a hell of a lot simpler to create demand with stimulus than to stabilize supply and that there's no reason for production bottlenecks to last forever in a press conference on June 16.Goldman Sachs economists wrote Wednesday that supply chain shortages were only temporary. The economy is currently full of gaps. For example, used cars have been driving up inflation because new cars are in short supply. Consumers want to get on the roads. As supply chains and businesses adjust, the shortages will decrease.In a labor shortage, wages are on the rise as employers offer higher salaries to attract workers back. Michelle Meyer, a Bank of America researcher, notes that even this growth could be temporary. BofA stated that there is a mismatch in demand and supply in hospitality and leisure. They cited wages increasing 15.1% in hospitality and leisure over three months. The passage of time may help to cool down the growth and resolve this problem.Inflation concerns can be downplayed for their benefit. Price growth is a self-fulfilling prophecy. Businesses tend to increase their selling prices as Americans have higher inflation expectations. This could lead to a cycle in which prices rise ever more as workers demand higher wages. The Biden administration could coordinate its efforts to maintain calm over price growth, which could help reduce inflation expectations.Republicans have continued to tie rising prices to their president, however. The GOP has intensified its criticism of the spending plans and said that the government's increase in expenses could lead to an inflation crisis similar to the 1970s. However, early indicators point to a cooler June in price growth so this argument may soon be discarded.
