US inflation skyrocketing, Biden peaking. He is now less popular than Trump.
The US inflation figures released today are interesting: we are at 7.5% year-on-year. A good result for Biden, who seems increasingly confused. Indeed:
“President Biden's plan is to respect the independence of the Federal Reserve to prevent high prices from rising,” adding that “the Federal Reserve has begun to provide extraordinary support during the crisis. Given the strength of our recovery and the pace of recent price increases, it is appropriate that they recalibrate that support. " That is, he is calling, quietly, to raise rates.
For Biden, the Fed should slow the economy. And since even Goldman has admitted that the Fed has never managed to achieve a soft landing…
Here is the inflation situation, with a core at 6%. That is, wages increase, but not enough yet
And now Biden's liking is sinking like a stone. Eventually Biden became less popular than Trump during the same presidency. Because Trump may have been bad, but the economy was running it.
Now the White House is asking the Fed to pursue a restrictive policy and to reduce economic growth and wages as soon as possible. Wages that for 10 months have not grown more than inflation, decreasing their real value.
Not an easy thing to explain especially if you are, or should be, on the left. a dangerous game because the Fed when it does these operations usually makes some disaster: it would be enough to remember the crisis of 2007 and that of 1929 …
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The article US inflation skyrockets, Biden peaks. He is now less popular than Trump. comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/inflazione-usa-alle-stelle-biden-a-picco-ora-e-meno-popolare-di-trump/ on Thu, 10 Feb 2022 21:03:27 +0000.