The U.S. inflation rate unexpectedly hit a more than 40-year high in May. President Biden reiterated on Friday (10th) that fighting inflation is the top priority, and once once more blamed record gasoline prices on Russian President Vladimir Putin’s invasion of Ukraine. The rise in prices has also targeted “greedy” oil merchants such as Exxon Mobil and “absurdly high” ocean freight rates.
U.S. data on Friday showed consumer price inflation unexpectedly hit a 40-year record in May as rent, gasoline and food prices rose sharply, while consumer confidence tumbled to a record low in June.
U.S. President Joe Biden said in a statement: “Today’s data shows why I have made fighting inflation a top economic priority. While the key ‘core’ inflation rate is a good thing, it’s not coming down enough or fast enough.”
In his speech at the Port of Los Angeles, Biden said the U.S. should do more to bring inflation down faster and called on Congress to pass bills to lower energy costs, ocean freight rates and prescription drug prices.
Regarding freight rates, Biden said that the nine major airlines in Asia to the United States have increased their prices by up to 1,000%, and their profits have doubled to $190 billion in just one year. “We need to make the nine major foreign airlines understand. , they cannot continue their extortionate practices.”
Biden also slammed Exxon Mobil (XOM-US) wait for the oil giants to stop spending their money on treasury stocks and invest in production capacity.
He called for a tax on the treasury stocks of oil companies. “Exxon Mobil has made more money than God this year. They should start investing and start paying taxes.” Democrats have already proposed taxing the treasury stocks of listed oil companies. Tax.
Biden’s harsh and pointed rhetoric reflects the general concern among the American people regarding the current state of the economy, even as the job market remains active. Analysts predict that Democrats might lose their congressional seat in the November midterm elections if inflation doesn’t cool.
Highlighting Fed’s role in fighting inflation
Biden met with Federal Reserve Chairman Powell at the White House last week, stressing the Fed’s role in controlling prices. Brian Deese, director of the White House National Economic Council (NEC), reiterated that view on Friday, saying: “The Fed has the tools it needs, and we provide the space it needs to operate.”
A White House insider confirmed that inflation has been influencing the decision-making of Biden’s team, and that staff have been reluctant to make decisions on issues such as student loan relief or canceling Chinese tariffs. Chance.
A growing number of polls show that Americans see inflation and the economy as the most pressing issues. For example, in a survey by the Wall Street Journal National Polling Center, 83% of respondents thought the U.S. economy was “not good or not very good” and 35% were dissatisfied with their financial situation.