Despite what the White House has been claiming for months, that escalating costs were temporary and transitory. But, President Joe Biden’s 40-year high inflation is here to stay, according to several outlets.
According to Axios report on Monday, “Inflation is pushing prices higher and higher, and some of those costs may never come back down to the levels Americans were accustomed to prior to the pandemic. The good old days of cheap goods, and even cheaper services, may be long gone. Gas, food and other consumer prices have soared, with no end in sight.”
In a report from University of Pennsylvania’s Wharton School, Biden’s inflation will apparently cost consumers an extra $5,200 in 2022, or $433 per month. Inflation in 2021 has already cost consumers an estimated $3,500, and of course and as usual, affecting low-income families the most.
White House Secretary Press Jen Psaki said in May last year, “Obviously, our analysis is going to be done by our economic experts. They continue to convey that they believe the impact will be temporary and transitory.”
With inflation still soaring in December, Psaki was asked if she thought inflation was still fleeting. “Given what Jerome Powell is now saying, does the administration, does the president acknowledge that inflation is more entrenched and not transitory?” NBC News’ Kristen Welker questioned.
Psaki’s response was one of blaming the soaring prices on the pandemic and stretches the transitory timeline into 2022.
Psaki said “It (inflation) will ease next year, and that our supply chain issues and higher prices are rooted in the Pandemic.”
Barrons reported that Biden’s inflation has not dropped. Instead, inflation has only become worse and will continue to soar in 2022. Inflation has become so bad that Goldman Sachs projected the Federal Reserve has a 35% chance of causing a recession as a result of tightening monetary policy to cool inflation.
And Bloomberg reported, “Eleven out of fourteen tightening cycles in the U.S. since World War II were followed by a recession within two years, but only eight of them can be even partially attributed to Fed tightening, while soft or ‘softish’ landings have been more common more recently.”
As inflation has continued to climb, what the Biden administration was calling “transitory,” has now suddenly shifted to “Putin’s price hike,” blaming the invasion of Ukraine. Before that shift CNN labeled inflation “good,” but the Washington Post noted that some have changed to it to “corporate greed.”
While in Iowa last week, Biden continued his claim saying, “Putin’s invasion of Ukraine has driven up gas prices and food prices all over the world. So, everything is going up. We saw it in today’s inflation data.”
But Biden’s claim that inflation is strictly a result of Putin’s actions is entirely false and incorrect. Inflation was climbing well before the “Putin’s price hike” excuse came into play.