With an endless faith in markets to solve all problems, neoliberal economists are engaging in Olympic-level logical gymnastics to avoid blaming market power in the US economy for any portion of the current inflation levels. Despite the fact that firms with market power set prices and do so across successive time periods, inflation has no nexus whatsoever to market power—or so the seemingly monopoly-besotted neoliberal crowd tells us.

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Longer term, legislative action could modify the Sherman Act to allow state attorneys general and private enforcers to pursue cases involving the exchange of competitively sensitive information via earnings calls. The American Economic Liberties Project issued a model piece of legislation that would accomplish this goal. The Biden Administration could get behind this reform, as well as legislation sponsored by Senator Warren that would give the FTC broad powers to go after gasoline price manipulation.

Biden needs to communicate to the public that he supports efforts to tamp down inflation outside of the traditional interest-rate-hike paradigm. Progressives in his party did not vote for Republican-lite; they want to see someone who will fight for the interests of workers. These interventions meet with popular approval, and contra the positions of neoliberal economists, actual find support in economics and in the data.