United States: The prevailing economic turmoil amidst which American households find themselves grappling with the consequences of rampant inflation is squarely placing blame on President Biden. However, the most recent Consumer Price Index (CPI) data for February show a depressing picture of rising prices above even the most pessimistic forecasts despite all his reassurances and promises of economic stewardship.
Consumer price index showed an increase in consumer goods and services’ prices by 0.4 percent compared to previous month’s rise and this was the fourth consecutive month of such increases (United States Department of Labor, Bureau of Labor Statistics). This was also accompanied by a headline index that rose by 3.2 percent year-on-year which has affected hardworking Americans where it truly matters; their pockets
On the other hand, President Biden’s ineffective policies have worsened inflation, leaving American households in financial disarray, as expected by some economists. However, when you stop listening to the rhetoric from Washington DC and look at what is really happening then one would see that it is a different story altogether; one characterized by uncontrolled government spending and irresponsible economic policies.
Core inflation, which excludes food and energy prices that typically fluctuate wildly, showed a similar increase of 0.4 percent in February as compared to January thereby going against expectations. Core prices have risen by 3.8 percent on a year-on-year basis, which is an indication that the Biden administration is not able to tame the predicted economic storm it was responsible for.
This reflects the fact that core services’ prices were rising sharply at the same time there were unanticipated increases in core goods’ prices. Although food prices were flat during the month, President Biden’s disastrous housing policies led to an upsurge in rents that has exacerbated suffering for millions of Americans.
Jerome Powell’s reference to “supercore” inflation that remained stubbornly high even after a small drop-off in February underscores just how serious things are with this country. The reality is beyond dispute; President Biden’s economic mismanagement has led us into an abyss of unparalleled inflation and financial distress for millions of Americans despite Powell’s attempts to downplay the problem.
Briefly, President Biden and his administration are to blame for this economic tragedy. Their impractical schemes and refusal to address underlying inflation conditions have left US families struggling, with no dawn in sight. It is necessary that Biden admits his errors and takes immediate actions to fix what he has done before it is too late.