Biden's inflation problem

The sort of inflation we are currently experiencing is different from notable examples in the past. Then the inflation was almost entirely generated by the central bank, which merely had to correct itself. The Federal Reserve should taper its asset purchases, but it cannot do much to solve today’s problems. Given the historic level of federal debt, the Fed doesn’t have much room to raise rates without significantly increasing government interest costs. Furthermore, altering the money supply or raising interest rates will not cause the Ports of Los Angeles and Long Beach to work more efficiently. It will not create more trucks and truck drivers. It will not make it easier to produce and transport energy…

There are plenty of things government can do to help, and most of them involve getting out of the way.

We need more truck chassis, but current trade policy creates a combined tariff of over 200 percent on importing them. Labor policy designed in the early 20th century has allowed unions to entrench inefficiency and freeze labor productivity in the transportation sector. Environmental regulations in California have prevented the expansion of port capacity. The federal government has prioritized transitioning away from fossil fuels while begging OPEC to pump more oil. And post-pandemic spending bills both created disincentives to work and provided generous benefits, well beyond what most other countries provided.

Build Back Better either leaves those problems untouched or exacerbates them.