Faced with a sharp drop in approval ratings and a relentless rise in consumer prices, President Biden is finally turning to full-blown inflation, with a month-long campaign aimed at curbing the public’s anger over the rising cost of living. The White House is taking steps to quell voter outcry over rising inflation, signaling that Biden understands what U.S. households are enduring – and that officials are stepping up efforts to bring prices under control – in the run-up to the interim November term, during which Democrats risk losing their already razor. -thin majorities. HOW THE FEDERAL RESERVE FORGOTTEN THE SIGN IN THE HIDDEN INFLATION Just last week, Biden had a rare meeting at the Oval Office Federal Reserve President Jerome Powell, wrote an article in The Wall Street Journal about his plan to handle higher prices and sent his top lieutenants, including Finance Minister Janet Yellen, via cable news to advertise his plan. The president described tackling inflation as “his highest priority”. However, the media boom comes long after the White House was accused of blatantly underestimating the problem of inflation, insisting that prices would fall even when it became clear that the rise would last longer than expected. Here is a closer look at the Biden administration’s response to inflation last year:
June 2021
Inflation has accelerated at the fastest pace in almost 13 years, with consumer prices – which measure the cost of everyday goods such as cars, rent, healthcare and petrol – soaring by 5% in May (government publishes financial reports next month (ie Inflation data for May were not public until 10 June). While this was the fastest pace since 2008, shortly before the financial crisis triggered a huge recession, inflation was not a top priority on the White House radar. THE US ECONOMY IS LOCATED. IN THE HANDS OF THE RECESSION? FED TRACKER GDP SAYS YES White House officials argued that rising inflation was not only temporary – the result of cracked supply chains – but ultimately indicative of an economic recovery in the wake of the COVID-19 pandemic. At the time, the Democrats’ $ 1.9 trillion spending bill was beginning to filter into the economy, COVID-19 cases were declining and more Americans were being vaccinated. “As the virus shrinks, the economy is improving, step by step,” wrote Heather Busey, a member of the White House Financial Advisory Board, on Twitter. “Today’s inflation data is the latest indicator that things are moving in the right direction and that we have hiccups in the supply chain.” Finance Minister Janet Yellen acknowledged at this point that inflation could end up being higher than expected. However, he insisted that the rise was largely due to temporary factors.
July 2021
Inflation continued to rise in June, with prices up 5.4% from a year earlier, according to a government report released on July 13th. White House officials said the rising costs came from pandemic-induced economic disruptions, including inhibition – rising consumer demand and supply chain disruptions. On the White House lawn, Biden claimed that the United States was “closer than ever to declaring our independence from a deadly virus,” even as the delta variant began to evaporate. Containers appear in port in San Pedro, California, March 22, 2018. (Reuters / Bob Riha, Jr. / Reuters Photos) “We also know that as our economy has returned to roaring, we have seen some price increases,” Biden said in a July 19 statement. “Some people have expressed concern that this could be a sign of persistent inflation. Our experts believe and the evidence shows that most of the price increases we have seen are – expected and expected to be temporary.” The federal government has also begun providing the first of a series of monthly child tax credit payments of up to $ 300 per child.
August 2021
Prices remained above pre-pandemic levels in July, with the consumer price index remaining stable at a 13-year high of 5.4%, the government said in a statement on August 11th. The White House and the Federal Reserve argued that rising consumer prices were simply a side effect of pandemic supply chain malfunctions. Officials tried to reassure voters that when life returned to normal, price increases would subside. YELLEN CALLS INCREASED INFLATION “UNACCEPTABLE”, BUT OFFERS A FEW SOLUTIONS TO COOL PRICES “One month is not trending (monthly inflation slowed in May before recovering in June) and we know supply-side constraints remain in various areas,” the White House Chief Financial Officer wrote on Twitter.
September 2021
Inflation fell sharply in August, falling to 5.3% year-on-year and breaking an eight-month uptrend, according to a Labor Department announcement in September. It gave a brief respite to policymakers who thought it might signal the end of rising inflation.
White House economists hailed the report as proof that the so-called “transient group” was right in predicting that price rises would soon slow.
“We consider the report to be consistent with the story we, the Federal Reserve and the vast majority of meteorologists have talked about,” said Jared Bernstein, a member of the White House Financial Advisory Board. “It’s been a month and we will continue to monitor the data closely.”
October 2021
Inflation moved higher in September, dispelling hopes that consumer price hikes had flattened out. The consumer price index jumped 5.4% year-on-year, with prices generally rising for things like cars, food and televisions, among other goods. Billboard on the hardships of inflation in Coon Rapids, Minnesota. (Universal Images Team via Getty Images / Getty Images) Although Biden had originally proposed his huge spending package, the Build Back Better plan as a solution to correcting inflation turned in October, saying his government was doing everything it could to fix supply chain problems. This included allowing the Port of Los Angeles to operate 24 hours a day to reduce growing backlogs and encourage states to allow truck drivers faster. “Today’s announcement has the potential to change the game,” Biden said of the port’s longest operating hours. He also called on private sector companies to “accelerate as well”. In the same month, Federal Reserve officials began preparing to slow down their aggressive bond-buying program, the first step policymakers will take to remove economic support from the pandemic era.
November 2021
Consumer prices rose again in October, rising at the fastest pace in more than three decades, as fuel costs soared and supply chains remained cracked, according to a November report. Overall prices rose 6.2% in October from a year earlier – the fastest rate since 1990. THE US ECONOMY IN THE WEIGHT SEAT WARNS THE LARGEST HEDGE FUND Biden called the reversal of the inflation trend a “top priority” and acknowledged that higher prices hurt American pockets in a statement after the report. However, the president went on to blame supply chain disruptions and rising energy costs for the sharp rise in inflation, and argued that the bipartisan infrastructure bill – which included $ 500 billion in new funding – would help alleviate those problems. President Joe Biden speaks during a visit to a family farm in Kankakee, Illinois, on May 11, 2022. (Taylor Glascock / Bloomberg via Getty Images / Getty Images) “A lot of people are still worried about the economy and we all know why: They’re seeing higher prices,” Biden said. The Federal Reserve announced its plans to start slowing its aggressive bond-buying program by $ 15 billion a month in mid-November. Monthly asset purchases, known as quantitative easing, were intended to stabilize financial markets and maintain cheap credit during the pandemic. “Inflation is high, largely reflecting factors that are expected to be temporary,” the FOMC said in a statement after the meeting. “The supply and demand imbalances associated with the pandemic and the opening up of the economy have contributed to significant price increases in some sectors.”
December 2021
Inflation rose in November, exacerbating Biden’s political headache. The consumer price index rose 6.8% in November from a year earlier, the fastest rate since 1982. Democrats, including Biden, have continued to push for Build Back Better as a cost-cutting solution – including childcare and healthcare. “We have never had this kind of growth in 60 years, but inflation is affecting people’s lives,” Biden said in December. “The reason … economists think [Build Back Better] it will, in fact, reduce the impact on inflation because it reduces costs for ordinary people. ” President Joe Biden speaks at an event at the Electric City Trolley Museum in Scranton on October 20, 2021. (Spencer Platt / Getty Images / Getty Images) But Sen. Joe Manchin, DW.Va., toppled the bill later this month, citing high inflation and letting Democrats turn around to find another defense against inflation. In another blow to Biden, Powell acknowledged that inflation may not be temporary and signaled that interest rate hikes were coming sooner than expected. The central bank also doubled its cut in bond purchases to $ 30 billion a month. “There is a real danger now, we believe – I believe – that inflation may be more persistent,” Powell told reporters. “The risk of consolidating higher inflation has definitely increased. I do not think it is high at the moment, but I think it has increased.”
January 2022
Inflation rose at the fastest pace in nearly four decades in December as rapid price gains fueled consumer fears about the economy and pushed Biden’s rating down. The consumer price index increased by 7% in …
