Laffer warns of developing inflation pattern similar to the '70s - and it doesn't look good for Biden, he says

Former Reagan Economist Art Laffer warns of similarities between today's current inflation surge and patterns seen in the 1970s, arguing "it doesn't look good" for the Biden administration.

ART LAFFER: I don't know what this administration is doing to tame it [inflation]. Whatever they do is way beyond my Ken, just for the record. But what you're seeing here in these prices - and let me say, if I can, a wholesale prices, producer prices index tends to be highly volatile over the years and only when we're coming into serious periods of inflation, long-term inflation, does the consumer price index tend to go along with a wholesale price index or the producer price index. That is exactly what you're seeing right here. 

YELLEN: FEDERAL RESERVE WON'T ALLOW INFLATION TO REACH 1970S LEVELS

This is the type of pattern that we saw in the 1970s, up until about 1981-82. That's the pattern. Since then, we have not had that pattern develop at all. Interest rates have been low. Inflation has been low. All of that, that appears to be changing dramatically. The consumer price index is following the producer price index way up. And both of those are very bad signs for inflation going forward. And I don't think Janet Yellen knows what to do. I don't think she can do anything. I think she'll try to do something very dramatic, but it doesn't look good for this administration on inflation. 

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