As inflation targets family budgets, Biden White House says it has a plan
WASHINGTON (Gray DC) - Inflation continues to increase, and that means your cash is becoming less valuable. The federal government released numbers showing inflation in November reached a level not seen in 39 years.
The U.S Bureau of Labor Statistics announced this month a 6.8 percent rise in the Consumer Price Index from November 2020 to November 2021.
Whether rising inflation is a short-lived side effect of supply chain disruptions fueled by higher consumer demand, or a long-term impact of federal monetary policy,
lawmakers say it’s hard for the typical family to ignore the hit on their budget.
Republican lawmakers seized on the news and criticized policy by the Biden Administration.
Senator Pat Toomey (R-PA) tweeted, “Today’s jaw-dropping inflation report should alarm every single American, but especially policymakers. Hardworking American families are suffering as a direct result of the Biden administration’s reckless borrowing and spending and anti-energy policies.”
A new ABC News/Ipsos poll shows 69% of Americans disapprove of Biden’s handling of inflation.
In an interview with Gray Television’s Washington News Bureau, White House Deputy Communications Director Kate Berner said the administration’s plan to address inflation includes helping drive down the cost of gasoline and natural gas, while also focusing on knocking loose supply chain bottlenecks.
Berner said, “We have a plan to tackle these prices and are working on it. We’re seeing progress, but there’s a lot more that needs to be done, and we’re focused on making sure that families see that relief in their pocketbooks.”
Berner would not comment on Federal Reserve fiscal policy. However, even before the recent inflation numbers, Federal Reserve Chairman Jerome Powell signaled a rise in short term interest rates as early as the first part of 2022.
Georgetown University business professor Dr. James Angel says action needs to come more quickly.
Angel said, “Nobody likes higher interest rates because that means you pay more when you borrow money that tends to have a depressing effect on the economy. But in order to rein in the inflation, that’s what needs to happen.”
Angel also points to COVID-19 pandemic relief is a key inflation driver.
He said, “You can view this inflation is the price of the stimulus check that you got a few months ago. I mean, that’s really how you’re paying for it.”
Angel said he expects inflation to continue for the next several months but does not think it will rise to double digit levels and said people will need to shop more carefully to combat inflation impacts on their household budgets.
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