President Joe Biden began the year by proudly stating that inflation was decreasing and was lower than any other major economy at the time. However, the reality has changed since then, with the Federal Reserve struggling to control rising prices. This can be attributed to the president’s excessive spending, despite claims from Democrats that inflation is not worsening.
In the first four months of the year, consumer price index inflation has risen from 3.1% to 3.4% on a 12-month annualized basis. The CPI has increased by 1.4% in the past four months, exceeding the Fed’s target of 2%. While core CPI has slightly decreased from 3.9% in January to 3.6% in April on a 12-month basis, it has still increased by 1.5% in absolute terms.
Producer price index inflation has more than doubled since January, and personal consumption expenditure price inflation reached its highest level since November of 2023 in March. Core PCE inflation has exceeded the Fed’s target, reaching 4.4% in March.
A survey by the Federal Reserve Bank of New York found that consumer inflation expectations have increased, with gasoline and food price inflation expectations rising significantly. Median earnings growth expectations have declined, with real average weekly earnings falling by nearly 5% since Biden took office.
Despite Biden’s claims, voters are aware of the worsening inflation and its impact on their finances. The majority of registered voters believe their finances have worsened since Biden took office, with many attributing it to his policies.
Biden’s insistence on continuing inflationary fiscal policies is undermining the positive economic news he could deliver before Election Day. Bond markets now predict a one-in-three chance that the Fed will not cut interest rates at all before the election, due to worsening inflation exacerbated by Biden’s policies.
With both price hikes and interest rates remaining high, Biden may have no one to blame but himself if voters choose to send him into retirement.
