The White House has scored a few “wins” this year if winning entails breaking records, and they sure are pulling out all the stops in terms of shattering twenty-first century records regarding inflation.
Inflation, which the Biden administration loudly declared was “transitory” for way too long, has since moved on to blame Putin for inflation, though “Putin’s price hike” can only suffice as a weak excuse for so long.
As a result, pressure on the Federal Reserve has amplified to tame inflation, with Chairman Jerome Powell taking a highly aggressive stance towards taming consumer prices that are steadily careening out of control.
The urgency has amplified since the summer, as evidenced by remarks from Powell in late August.
“Without price stability, the economy does not work for anyone,” Powell intoned.
Now, more recent economic reports reveal that prices rose 8.2 percent relative to a year earlier, shattering any illusory hopes regarding a decrease in rampant inflation.
In addition, mortgage rates have recently risen to 6.92 percent, the highest level in more than two decades.
For comparison purposes, when Biden was inaugurated in January 2021, the mortgage rate was 2.77 percent.
And, in a clear shattering of twenty-first century inflation-related records, social security recipients will see an increase of 8.7 percent due to the cost-of-living adjustment (COLA), which is the most significant increase in four decades.
Kind of like raging inflation is at its most significant in four decades.
Freddie Mac’s Chief Economist Sam Khater has argued that the United States is currently existing in a rather paradoxical state, due to the strong job market and raging inflation.
However, one will eventually have to supersede the other, a forecast that is presently unclear.
“We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important for the economy and the housing market,” Khater mused.
And, clearly, Powell is making inflation a greater priority than employment, especially if consumer prices careen so far out of control that ordinary jobs will not suffice for purchasing basic necessities.
“We are taking forceful and rapid steps to moderate demand so that it comes into better alignment with supply, and to keep inflation expectations anchored. We will keep at it until we are confident the job is done,” Powell declared.
No kidding. Like remarkably rapid interest rate increases, almost as if the likes of individuals like Paul Pelosi want to make a killing from the all but guaranteed market volatility.
However, at least Powell is tackling inflation with a real solution.
Biden, on the other hand, looks for everyone but his administration to blame, as evidenced by remarks earlier this summer.
“Look, folks, today I’d like to speak about my top economic priority: fighting inflation. I understand Americans are anxious, and they’re anxious with good reason. I was raised in a household when the price of gasoline rose precipitously, it was the discussion at the table. It made a difference when food prices went up. But we’ve never seen anything like Putin’s tax on both food and gas,” Biden drawled.
Oh, right, “Putin’s tax.” Or “Putin’s price hike.”
Never mind a phrase more accurate, such as “Democrat policies.”
White House Council of Economic Advisers member Jared Bernstein kept up the same nonsense excuse Biden used, claiming that an American ally was “misguided” in the process.
“If you look at the unconscionable actions of Putin, weaponizing energy, amplified by the short-sighted and misguided decision by OPEC+ recently, then sure, having the [Strategic Petroleum Reserve] there for potential release is an important tool,” Bernstein sniffed.
“Short-sighted and misguided,” huh?
Excellent summation of the Biden administration.
Author: Jane Jones