The White House’s allegations that US policymakers are effectively dealing with rising living costs were shattered on the morning of the 10th. The US Consumer Price Index (CPI) released today saw a year-on-year growth rate of 40 years, hitting a record low.
“Today’s statistics clarify why inflation has been a top priority for economic policy,” Biden said in a statement. Excluding volatile food and energy, he pointed out that “it’s good that the core CPI has settled down, but it’s not slowing as rapidly and rapidly as we can see.”
He said the United States needed to “take more action faster to push prices down,” and called on Congress to pass a bill to reduce energy, prescription and transportation costs.
The president’s harsh tone reflects widespread concerns among voters over the US economic situation, even with strong employment statistics. The University of Michigan Consumer Mind Index, released on the 10th, was the lowest since the start of statistics in 1980. The CPI in May rose 8.6% year-on-year, the largest increase in 40 years. In response to this, investors’ stock sales proceeded, and the S & P 500 stock index fell 2.9% from the previous day.
The White House stopped calling inflation “temporary” a few months ago, but data show that inflation hasn’t peaked yet, increasing the risk of recession. This is bad news for the ruling Democratic Party, which faces the possibility of losing a majority of seats in the November midterm elections.
President Biden met with the Federal Reserve Chairman Jerome Powell at the White House last month, emphasizing the Fed’s role in price control. In an interview with Bloomberg Television, the chairman of the National Economic Council (NEC) on the 10th, “Today’s figures highlight what the president has always mentioned and we have been focusing on. Anti-inflation is economic policy. It should be the highest priority of. ” “The Fed has the tools it needs. We provide them with the space they need to operate,” he said.
Hotter Than Expected
US headline and core inflation both rose more than forecast in May
Source: Bureau of Labor Statistics, Bloomberg survey
Original title:
Biden Team Points at the Fed as Inflation News Worsens (1)(excerpt)