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Inflation Reduction Act

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(FreedomWire.org) – President Biden attempted to downplay the U.S. inflation crisis during a “60 Minutes” interview, claiming that the month-to-month rate has “hardly” risen – which prompted his CBS interviewer to dispute his response.

CBS correspondent Scott Pelley asked: “Mr. President, as you know, last Tuesday, the annual inflation rate came in at 8.3%. The stock market nosedived. People are shocked by their grocery bills. What can you do better and faster?”

Biden quickly told Pelley he needed to “put this in perspective” and that the inflation rate month-to-month was “up just an inch, hardly at all.”

Pelley quickly interjected: “You’re not arguing that 8.3 [percent] is good news?”

“No, I’m not saying it is good news, but it was 8.2 or 8.2 [percent] before,” Biden responded. “I mean… you’re making, make it sound like, all of a sudden, my God, it went to 8.2%.”

“It’s the highest inflation rate, Mr. President, in 40 years,” Pelley fired back. 

“I got that. But guess what we are? We’re in a position where for the last several months, it hasn’t spiked, it is just barely, it’s been basically even. And in the meantime, we created all these jobs,” Biden argued, while acknowledging that prices “have gone up.”

The interview is the latest of Biden’s attempts to aggressively defend his economic policy. The White House celebrated the passage of the Inflation Reduction Act last week – despite the Dow Jones Industrial Average tumbling more than 1200 points that same day.

The Inflation Reduction Act is intended to lower prices for consumers, as the current economic crisis is forcing some Americans to rely on credit to pay for basic necessities. 

In addition, a University of Pennsylvania Penn Wharton analysis revealed the Inflation Reduction Act would do little to reduce the annual rate of inflation in the midst of the economic recession. The bill would only reduce annual inflation by 0.1 percentage point over the next five years.

“When it comes to credit card spending over the past couple of years, we have seen categories shift on where people are spending their money,” Wells Fargo executive vice president Krista Phillips said. “Right now, our top categories are grocery and gas.”

Consumer prices rose in August by one-tenth of a percentage point, even though economists had expected inflation to go down. Median inflation hit the highest level ever recorded.

The median Consumer Price Index, which reflects only measures in the center of CPI’s prices changes, rose 0.7 percent compared with the prior month, an acceleration from the 0.5 percent increase recorded in June. The unrounded figure of 0.73789 percent is the highest on record, slightly above the previous record of 0.73078 percent set in June.

This is equivalent to an annual rate of inflation of 9.2 percent. That is the highest on record.

(FreedomWire.org) – The president held a dramatic celebration of the “Inflation Reduction Act” on Tuesday afternoon at the White House, with a host of Democrat members of congress and guests.

This celebration occurred on the same day the federal government revealed that consumer prices rose again in August.

The Bureau of Labor Statistics’ Consumer Price Index released Tuesday morning shows that inflation in August rose one-tenth of a percentage point from July and up 8.3 percent from the previous year.

Grocery prices continue rising fast, as prices rose 0.7 percent from July and 13.5 percent from the previous year. Restaurant prices are up 0.9 percent from July

The “Inflation Reduction Act” spends billions of dollars subsidizing green energy projects, subsidies for electric cars, and propping up government-subsidized health care.
But the cost of health insurance and energy keeps rising.

Health insurance rose 2.4 percent over the past month and up 24.3 percent from the previous year. Electricity prices rose 1.5 percent from the previous month, and natural gas rose 3.5 percent.

Biden told supporters on Monday the United States was making progress on inflation.

“The American people should have confidence that we’re on the right track, that we’re seeing real progress,” he said at an event in Boston on Monday.

Inflation is still red-hot, despite an anticipated decrease from economists.

The latest report is a tough blow for a President who last month signed the misnomered ‘Inflation Reduction Act’ and an administration that tried telling the American people inflation had peaked.

Commerce Secretary Gina Raimondo was rather confident the Consumer Price Index was on the slide back in July, saying inflation has “probably” peaked, but that could change due to factors “out of our control.”

Those factors cited were “another war” and “another COVID,” neither of which contributed to the August report.

White House press secretary Karine Jean-Pierre engaged in a bit of mathematical wizardry when she declared last month’s 8.5% year-over-year rise in inflation to magically be “0%.”

“We just received news that our economy had 0% inflation in July,” she said in a blatantly false statement. “While the price of some things went up, the price of others, like gas, clothing, and more, dropped.”

Former President Barack Obama, in a White House appearance just days ago, praised President Biden and told the American people they are “better off” under his administration.

To host a party to celebrate inflation is a slap to American’s faces, talk about adding insult to injury.

The White House should have at least waited for The Bureau of Labor Statistics, to release the consumer price index report, before planning a celebration.

(FreedomWire.org) – CNN’s Kate Bolduan pressed an economic adviser in the Biden administration to explain why the “Inflation Reduction Act” doesn’t actually reduce inflation and she laughed at the answer.

Bolduan was interviewing Cecilia Rouse, the chair of the White House Council of Economic Advisors, on the signing of the bill Tuesday and the official scoring that said it doesn’t actually do what it says it will do.

“Democrats titled this bill the Inflation Reduction Act, which begs of course for voters to hold you all accountable to that,” said Bolduan.

“The Congressional Budget Office, you know this, but to remind viewers, the non-partisan kind of scoring organization for legislation, says that the bill would have negligible impact on inflation this year and next,” Bolduan continued. “Are you personally comfortable as an economist calling it the inflation reduction act?”

“So this bill represents really important investments we know we need to make that help to expand our economic capacity,” Rouse responded.

“Inflation happens when we have too much demand for the supply, and we know we need to be investing in the supply supports so we are better able as a country to address issues like inflation going forward,” she added. “So this will increase our economic growth, and because of how we planned to implement it and provisions in the bill, that growth will be more equably shared.”

Bolduan persisted.

“But if you passed a bill called the Fill Every Pot Hole Act, I mean voters should expect you to fill every pot hole. So should voters measure the success of this bill on how much you reduce inflation in the next couple of years?” Bolduan asked.

Rouse went on to explain that the bill’s benefits would be spread out over many years, but she did not actually answer why it didn’t actually lower inflation.

“Yeah,” Bolduan replied.

“And a name is just a name, but there are definitely a lot of other names you could have named this bill!” she laughed.

Rouse was similarly pilloried by another CNN anchor, Jake Tapper, in July when he pointed out that Biden officials kept coming out to say they were working on inflation while it kept getting worse.