The White House Thursday tried to give a rough economic report another positive cycle, saying there are indications of progress in the recent release Inflation figures Even as the Fed is expected to respond by aggressively raising interest rates again.
The September Consumer Price Index report, which measures changes in the prices of a list of consumer goods and services, released on Thursday showed that US consumers were still affected. higher prices Despite the unprecedented increases in interest rates by the Federal Reserve in recent months aimed at calming the market.
Data from the Bureau of Labor Statistics showed annual inflation rose 8.2% in September, a slower increase than the 8.3% rise in August. Economists had expected the pace of price increases to slow to 8.1% last month. On a monthly basis, overall consumer prices rose 0.4% from August.
While in California on Thursday, Biden acknowledged Americans are feeling the pain noting that inflation over the past three months has averaged 2% — down from 11% in the prior quarter.
“This is progress,” Biden said, later acknowledging that “the cost of living is tight for Americans. It’s been true for years and people don’t need to read the report to tell them they’re under pressure. Fighting this fight every day is one of the main reasons I run for office. President of the United States.”
He also said that the current struggles are a global phenomenon and are not being led by more and more Americans with higher salaries.
Earlier Thursday, Biden received a briefing from his economic team and directed them to keep him updated as conditions evolve. A statement issued by the White House said that his economic team “reported that the United States remains in a strong position to reduce inflation and maintain a resilient labor market,” and that the president’s economic plan positions the American economy “for stronger growth and investment.”
Trying to find the bright side in the new inflation figures highlights an ongoing and urgent matter political problem for President Joe Biden And his administration: Addressing Americans’ economic concerns and mitigating the potential fallout in next month’s midterm elections.
The stock market initially tumbled when the report was released — Dow futures fell more than 400 points, or 1.5%, after the report was released, S&P 500 futures fell 1.8%, Nasdaq futures fell 2.6% — but the market is back Late again. Morning trading.
As has been the case for months, administration officials are expected to continue to underscore Biden’s commitment to cutting prices in part by pointing to some of the Democrats’ recent legislative accomplishments — such as passing a bill Inflation Reduction Act – The White House believes that it will eventually help in dealing with inflation.
Inflation has declined in recent months mostly due to lower energy prices. The average price of a gallon of gas for 98 consecutive days in the summer has fallen to $3.68 from a record low of just over $5. But prices have been creeping higher for nearly a month, surging to $3.91 a gallon, according to AAA. Meanwhile, food, shelter, and other prices soared with no end in sight.
For the White House, the new data exacerbates a two-pronged problem that has plagued the administration for months. Less than a month before Election Day, the administration’s inability to secure a clear trend of slowing inflation — quietly seen as their primary goal in the run-up to the vote — underscores the political weakness Democrats face on an issue being recorded in poll after poll as top priority for voters.
The economy and inflation remain crucial issues for voters a few weeks after the midterm elections. new CNN Poll by SSRS 90% of all registered voters showed the economy is very or very important in determining who to send to Congress, and 84% of voters said the same on the issue of inflation.
However, the numbers generally serve as the latest data point the market is looking at as likely to drive continued sharp increases – unprecedented in recent history – in the interest rate by the Fed.
While Biden and his team have publicly given the central bank room to make its policy decisions without political interference, there is a strong awareness that the rapid pace of price increases makes the moves increasingly likely to push the United States into a recession. That will likely have the effect of undoing some of the obvious gains officials are pointing to low- and middle-income Americans due to Biden’s major legislative victories.
A number of industry leaders and economists are warning of the possibility of a recession in the coming months, but Biden insisted Publicly he doesn’t think there will be a recession, saying this week: “I don’t think there will be a recession.”
If so, it would be a very slight recession. That’s why we’re going to go down a little bit,” Biden told Jake Tapper on Tuesday in an exclusive interview on CNN Tonight. “It’s possible. Look, it’s possible. I don’t expect it.”
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