Nevertheless, those efforts have done little to control inflation, which has been running at its fastest pace in 40 years, as a result of supply chains leading to a shortage of goods; Russia’s war in Ukraine, which raises energy prices; And the need for a wider consumer.
Secretary of the Treasury Janet L. Yellen told a Senate panel on Tuesday that she was concerned about rising prices in the United States and that despite some predictions that inflation would peak, it was unclear when prices would be moderate. He pointed out that the path of the epidemic, locking up in China and changing consumption patterns in the US were important variables.
“The inflation outlook is still uncertain,” Ms Yellen said.
Despite the president’s inability to tackle inflation – with the Federal Reserve being the primary tool for combating rising prices – the cost increase has become a talking point for Republicans and Mr Biden’s political responsibility, and its ratings have plummeted.
Republicans have blamed the Biden administration and Democrats for inflation, and see it as a successful issue ahead of the by-elections. Republicans point to the $ 1.9 trillion epidemic relief bill passed by Congress last year, which extended billions of dollars in stimulus payments and unemployment benefits while paying states and cities billions at a time when the economy is already recovering.
“Biden may be living in an alternative reality, but voters do not, and that is why they only blame Biden and the Democrats for the rise in prices of daily necessities, gas and groceries,” Ms McDonnell said. “The economy is in a referendum in November, and voters know that Fiden and the Democrats are making it worse.”
The Biden administration has blamed external factors, such as epidemics, supply chain disruptions and the fall of the war in Ukraine, and argued that Republicans were responsible for the incentives approved during the Trump administration. Biden management has accused companies of making things worse by raising prices to make a profit.
For several months, Mr. Biden borrowed to reduce the federal deficit and encouraged raising taxes on corporations and the affluent. He also accused energy companies of making a profit without increasing production.
Alan Rapport Contributed report.
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