Despite the Biden government celebrating “zero percent” pricing in July, which raised some questions, the head of the Federal Reserve Bank of Minnesota stated the monetary authority is “far, far away from claiming victory” on inflation.
Not out of Trouble Yet
On August 10, Neel Kashkari spoke to Reuters and expressed his opinion that the U.S. banking system will need to increase its policy rate by an additional 1.5 percent in 2022.
It will also need to go up by an additional percent in 2023, even when doing so results in a slump in the “long term” economy to get closer to two percent inflation.
According to Kashkari, in order to combat inflation, the Fed’s policy rate would need to be increased from 3.9 percent over the course of the year to 4.4 percent by the end of 2023.
He added he hasn’t “seen anything that alters” this perspective. Currently, the rate is between 2.25 and 2.5 percent.
The White House is a bit confused.
The inflation rate isn't at 0%, that's Biden's approval rating.
— Lauren Boebert (@laurenboebert) August 11, 2022
Although Kashkari praised the July consumer price index (CPI) document stating overall inflation dropped in July from 9.1 percent in June, he warned the Fed is “far, far off from claiming victory” on volatility.
In July 2022, the price index reported inflation has been at 8.5 percent, as per the labor statistics. 8.7 percent was the reading that experts had projected.
A lesser monthly gain of 0.3 percent compared to the corresponding period was recorded by the core rate of inflation, which includes the unpredictable food and energy sectors. It stayed constant at 5.9 percent last month.
The figures led President Biden to claim July’s inflation in the US economy was “zero percent,” which generated debate, especially among academics and Republican politicians.
Low inflation
Biden remarked on Wednesday during one speech from the White House: “Today we learned that our country saw zero percent inflation in the month of July.”
GOP Rep. Virginia Foxx stated on Twitter that “the Biden government has a troubled relationship with mathematics.”
Guys, pretty sure the Inflation Reduction Act is being misrepresented by the people who lied and called it the Inflation Reduction Act pic.twitter.com/RYKQ9cagOK
— Ben Shapiro (@benshapiro) August 11, 2022
Gas is up 44% from the year before, warned GOP Sen. Ted Cruz. The price of electricity has increased by 15.2% since last year.
The cost of food has increased since 1979. While Americans are experiencing horror, the Biden White House is enjoying a dream.
On Twitter, GOP Sen. Rick Scott stated that Joe Biden was still making the American people pay for his ineptitude while he was lying.
Inflation (CPI-U) was JUST AS BAD (not zero) in July as the one in June. 2. The CPI showed continued annual growth of 8.5%.
In spite of the criticism, White House press director Karine Jean-Pierre reaffirmed Biden’s remarks on inflation on her official Twitter, composing the following message:
“We just received word our economy experienced 0% inflation in July. While the cost of certain items increased, the cost of others, like petrol, clothes, and other items, decreased.
This article appeared in The Patriot Brief and has been published here with permission.
