A Newsweek magazine article confirmed that US President Joe Biden, who described last summer’s price increase in the country as a temporary phenomenon, has actually lost his fight against inflation.
Under the headline Biden lost to inflation after calling it “temporary” for 300 days, the magazine noted that, speaking at the White House in July 2021, Biden said rising consumer prices should rise in the United States. This is considered a temporary phenomenon. According to him, White House experts came to this conclusion based on the data they analyzed.
The annual inflation rate rose to 5.4 percent in June last year, the highest since August 2008, according to American magazine. At that time, “inflation was said to have reached.”
But 300 days after Biden’s speech, prices continued to rise and the annual inflation rate exceeded results last summer. The US consumer price index, which is an important indicator of inflation, rose 8.3% yoy in April after rising 8.5% in March.
In late April, the U.S. leader said he was not afraid of a recession in the U.S. economy. In early May, the U.S. Federal Reserve system, as the central bank, raised the benchmark interest rate by 50 basis points to 0.75-1% to fight inflation. The country’s gross domestic product (GDP) fell 1.4% year-on-year in the first quarter, according to the U.S. Department of Commerce. Despite this, Federal Reserve Chairman Jerome Powell said high inflation would not lead to a recession in the country.
Biden repeatedly justifies inflation, saying that the situation has been affected by the consequences of the crisis in Ukraine. In addition, he said inflation across the US has set a record because of Russia’s actions. On the other hand, Russian President Vladimir Putin stressed that the West is trying to unfairly hold Russia accountable for rising world energy prices.
Source: Newsweek
Source: Arabic RT
