Biden’s slide is still continuing. In that slide he has managed to set several records. He has managed to set a brand-new record this past week as announcement that U.S. inflation reached yet another record in June, with inflation soaring to 9.!%, the highest it’s been since 1981.
The increase has shattered the Dow Jones estimate of 8.8% and is the largest 12-month increase in almost for decades, having soared from 8.6% in May.
This is affecting American families, particularly the ones in low-income brackets, who are struggling to afford everyday essentials as the prices of goods continue to climb, while Biden’s approval rating is dropping like a rock.
Biden has urged Americans to stay calm about the rapidly and record setting economic situation, assuring the public that the country is on track to emerge from the surge of inflation, before adding that the figures were “out-of-date.”
Biden proclaimed, “White today’s headline inflation reading is unacceptably high, it is also out of date.”
Biden stated, “Those savings are providing important breathing room for American families,” referencing the 40 cents gas drop in the middle of last month from an eyewatering $5 a gallon to an average of $4.66 since Tuesday. “And other commodities like wheat have fallen sharply since this report,” Biden added.
But Fox Business reported, the sky-high inflation rate may force the Federal Reserve to trigger a major economic change by initiating a nationwide recession by raising interest rates.
Bank of America analyst Ethan Harris said, “What seem to be forgotten here is that inflation is a stick, slow moving variable. Spikes can reverse quickly, but underlying inflation tends to move in a gradual lagged fashion with respect to the economy. It is going to take time to cool off the labor market and even more time to lower labor cost-driven inflation.”
Federal economic policy makers approved a 75-basis point interest rate hike last month, the first of its kind since 1994 and another hike is expected later this month in an attempt to cool the inflation furnace. Projections suggest that interest rates will be as high as 3.4% by the end of the year, the highest since 2008.
As aforementioned, Biden’s approval rating continues to plummet. While Democrats could historically rely on pulling inthe black and Hispanic vote, rising prices of goods has hit lower-income communities the hardest.
Still making excuses, Biden acknowledged that the inflation crisis was an important priority for him, and then shifted the blame for the disaster from the war in Ukraine to the aftershock of the Covid pandemic.
Biden told NBC “Most of it’s the consequence of what’s happened, what happened as a consequence of the Covid crisis.”
Biden added, “Be confident, because I am confident, we’re better positioned than any country in the world to own the second quarter of the 21st century.”
Inflation in other Western nations has also seen dramatic rises in recent months. The UK hit 9.1% in May and inflation levels in the European Union are spiked at around 8.8% percent in June.
Canada’s inflation rate is currently 7.7% while Eastern countries like Japan and China are some of the lowest in the world at just 1.9% and 2.5% consecutively. Unsurprisingly, Russia’s rates sky-rocketed to 17.1% in June
Regardless how confident Biden is, it is hard to believe he is capable of getting of out of this mess he has gotten us into.