Inflation is going to stick around for a while according to the Congressional Budget Office. The nonpartisan group predicts prices to rise 6.1% this year and 3.1% in 2023. This is despite the best efforts of the Biden White House to deflect blame and reverse its own course.
While the CBO says inflation will cool from the currently scorching 8.3%, a near-40-year high, it is expected to remain well above the long-term average of 2.3%.
President Joe Biden, who may consider himself fortunate that Sen. Joe Manchin (D-WV) saved him from himself, very nearly made the problem much worse. Pouring almost $2 trillion into an already overheated economy is a surefire way to make a bad situation worse.
So while the administration rails at the Democratic Party’s tiny “centrist” wing, the American people owe them a debt of gratitude. Not to mention the GOP opposition to reckless White House spending.
All those descriptions by the administration last year of inflation being “transitory” are comical and sad. It took until December before the Biden White House would admit that soaring prices were not coming down and then more months to take action.
Now the Federal Reserve is caught having to implement large rate hikes as quickly as possible to bring inflation under control. At the same time, the central bank must pull away from Biden’s mess without triggering a recession that would cause further economic devastation.
American businesses discovered just this week that the Fed is likely to implement several half-point hikes in coming months. This means a much tighter money supply and the high likelihood that consumer spending, which had been red-hot, will back off.
Speaking of spending, what is Bidenflation costing the average American household? A Bloomberg study reveals it amounts to a $5,200 annual tax — or $433 per month — on each. Prices skyrocketing at the fastest rate since 1982 are a serious roadblock in the way of pandemic recovery.
Blaming everyone and everything from Putin to the pandemic does not fool many. Attempting to ride a nonexistent “mandate” to massive and expensive boondoggles put the nation on this course. Reversing it, unfortunately, is likely beyond the expertise of the current administration.