As inflation targets family budgets, Biden White House says he has a plan
WASHINGTON (Gray DC) – Inflation continues to rise, which means your money is losing value. The federal government released figures showing inflation in November reached a level not seen in 39 years.
The U.S. Bureau of Labor Statistics this month announced a 6.8% increase 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 increased consumer demand, or a long-term impact of federal monetary policy,
lawmakers say it’s hard for the typical family to ignore the blow to their budget.
Republican lawmakers have grabbed the news and criticized the policies of the Biden administration.
Senator Pat Toomey (R-PA) tweeted, “Today’s jaw-dropping inflation report should alarm all Americans, but especially policymakers. Hard-working American families suffer as a direct result of the Biden administration’s reckless borrowing and spending policies 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 the Washington News Bureau of Gray Television, White House deputy director of communications Kate Berner said the administration’s plan to fight inflation is to help lower the cost of gasoline and natural gas, while also focusing on removing bottlenecks in the supply chain.
Berner said, “We have a plan to fight these prices and we are working on it. We are seeing progress, but there is still a long way to go and we are working to make sure families see this relief in their wallets.
Berner declined to comment on the Federal Reserve’s fiscal policy. However, even before the recent inflation figures, Federal Reserve Chairman Jerome Powell signaled a hike in short-term interest rates as early as the first part of 2022.
Georgetown University business professor Dr James Angel said action needed to be taken faster.
Angel said, “Nobody likes higher interest rates because it means you pay more when you borrow money, which tends to have a depressing effect on the economy. But to contain inflation, that is what must happen.
Angel also points out that relief from the COVID-19 pandemic is a key driver of inflation.
He said, “You can see this inflation is the price of the stimulus check you got a few months ago. I mean, that’s really how you pay for it.
Angel said he expects inflation to continue over the next few months, but doesn’t think it will reach double-digit levels and said people will need to shop more carefully to fight against the impacts of inflation on their household budgets.
Copyright 2021 Gray DC. All rights reserved.