Staff Reports
Inflation came up in a private meeting with President Biden this year as he was addressing the cancellation of student debts, as it so often does in modern times.
Senator Joe Biden told the Congressional Hispanic Caucus that Republicans would attack him and use the word "inflation" whenever he did anything, according to California Congressman Tony Cárdenas, who met with Mr. Biden in April. Specifically, Cárdenas was alluding to Vice President Biden's remarks. "Regardless of the issue," Mr. Biden was aware that he would face criticism over increased costs, according to Mr. Cárdenas.
According to this remark, rising prices pose a clear political responsibility over every significant policy decision made by the White House because of today's rapid price increases. There are no good ways to talk to the public about inflation, therefore Joe Biden and his colleagues have become aggressive. Currently, we're experiencing our most rapid price hikes since the 1980s.
At times, the administration has had differences about how to handle rising costs, and the government has had to change its message many times because its talking points have not resonated and evidence has come in. Several Democrats in Congress have requested that the White House adopt a more proactive stance in the run-up to the November elections.
When it comes to reining in rapidly rising prices, however, officials in Washington are confronted with a difficult reality: there is little they can do. In the United States, the Federal Reserve's policy is the most important weapon in the fight against inflation. By raising interest rates, however, the Federal Reserve helps to limit price rises. For the economy, this is a gradual and potentially painful process of reducing demand.
May inflation is expected to be 8.2 percent, following an annual rate of 8.3 percent through the end of April, according to figures released this week. Annual inflation gains averaged 1.6% in the five years prior to the pandemic, making today's rate seem unbearably high in comparison. When it comes to household expenses, gas is one that's easy to notice because it costs $4.92 per gallon on the national average this week. With rising prices for basic items and the Federal Reserve raising interest rates to slow the economy, consumer confidence has dipped, increasing the likelihood that the country could enter a downturn..
In a series of classified documents handed to Mr. Biden last year by one of his top pollsters, John Anzalone, the White House has long known that rising costs may weaken Mr. Biden's support…. Even the White House has known for some time. Last month, Mr. Anzalone's staff compiled a supplementary research that found that inflation has only exacerbated voter dissatisfaction and that the president's poor popularity rating on the economy is second only to his policy toward immigration in terms of how unpopular it is.
As inflation became a long-term problem, officials in the administration began to dispute on how to conceptualize it. Supply chain constraints aggravated by ongoing coronavirus outbreaks may have contributed to the price increase, although growing consumer demand may also have been a factor. It was made possible in part by the government's stimulus programs, which included increased unemployment compensation and direct payments to individuals.
A few key talking points have been pushed by the president and his top political advisers, such as blaming President Vladimir V. Putin's invasion of Ukraine for the "Putin price hike," pointing to deficit reduction as a way to lower inflation, and making the case that Republicans have a bad plan to deal with rising costs. The president and his top political aides have advanced these arguments. Biden has repeatedly acknowledged the hardship caused by rising costs, and he has pointed out that the Fed, an independent agency, is responsible for managing inflation, which he has vowed to avoid interfering with.
An official in the government said that President Biden and his top aides have become increasingly worried about the public's negative view of the economy. As a second person who is aware of the conversations tells it, the administration's economists are less active in setting the tone on issues like inflation than they were in earlier administrations.
The White House's talking points haven't done much to sway public opinion or allay concerns on Capitol Hill, where a number of Democrats are encouraging the administration to come up with a more compelling narrative.
The preceding is a summary of an article that originally appeared on The Daily Cable.
