During a press briefing last week, Psaki rejected concerns that Biden’s $1.75 trillion Build Back Better bill would contribute to the ongoing inflation crisis, telling reporters, “no economist out there is projecting that this will have a negative impact on inflation.”
“Is it really true that there’s not a single economist who thinks the bill will boost inflation? No,” PolitiFact reacted in an article published Thursday. “Many economists have stated for the record that they think the inflationary impact of the bill will be small and brief. But we found lots of economists who say they expect modest inflationary pressure, at least initially.”
The report quotes economists from institutions like Bank of America and JPMorgan Chase, saying things like, “The economy seems to be operating pretty close to its capacity constraints.”
It also cites Larry Summers, the former Obama economic adviser who has been outspoken against the Biden administration over inflation concerns.
Regarding its ruling, PolitiFact insisted Psaki was “wrong” to say that “no economist foresees inflation” as a result of the Build Back Better spending bill being signed into law.
“Numerous economists, including some allies of the White House, have gone on the record saying there probably will be inflationary effects, especially in the near term, if the bill is passed,” PolitFact wrote. “However, the broad consensus among analysts has been that the bill’s inflationary impact will be modest and brief.”
“We rate the statement False.”
This marked PolitiFact’s first-ever fact-check of Psaki since she took over the White House briefing room.
The famed media fact-checker has been the subject of intense scrutiny over two poorly-aged reports last year involving the Kyle Rittenhouse case.
In August 2020, PolitiFact asserted it was “false” to claim Rittenhouse’s gun possession was “perfectly legal,” a fact-check the outlet stood behind even after the judge threw out a gun charge that would declare otherwise.
Another fact-check from September 2020 described then-President Trump’s description of what he believed transpired, which was that Rittenhouse acted in self-defense was “false,” insisting he had painted a “false picture” of the events that took place omitting key information.