Biden faces inflation concerns despite progress.

Is Biden’s Boast About Falling Inflation Premature?

Speaking during a Friday night address on the debt ceiling, Biden claimed that inflation was still falling, just days after the Bureau of Economic Analysis announced that the Federal Reserve’s preferred inflation gauge rose in April.

President Joe Biden has been touting falling inflation rates, but recent data suggests that he may have spoken too soon. The Federal Reserve’s preferred inflation gauge rose in April, contradicting Biden’s claim that inflation was still falling. While the increase was modest, it’s still more than double the Fed’s target inflation rate of 2%. Conservatives have criticized Biden for his handling of inflation, blaming it on his massive spending initiatives, such as the $1.9 trillion American Rescue Plan stimulus bill.

What Experts Are Saying

Most experts predicted that inflation would continue to fall, but the recent uptick has raised concerns. Alfredo Ortiz, president and CEO of Job Creators Network, says that “Bidenflation” is outpacing average wage growth, causing real wages to decline. However, University of Massachusetts economics professor Gerald Friedman believes that the economy is getting headwinds and that the Fed will likely stop raising interest rates going forward, especially as election season approaches.

Impact on the Electorate

Voters will ultimately decide how they feel about the economy, inflation, and the impact on their wallets since Biden took office. A University of Michigan consumer survey found that most respondents expect inflation to go up rather than down in the coming years, which could be a worrying sign for Biden. Should inflation continue to fall after the recent uptick, Biden will still need to convince the electorate that the economy is strong and will grow stronger under his watch.

Conclusion

While the recent uptick in inflation rates is cause for concern, it remains to be seen whether it will continue to rise or fall. Biden will need to address the issue of inflation and convince the electorate that his economic plan is working and will continue to deliver good jobs for the American people.