As per a Morning Consult survey released on Wednesday, the bulk of eligible voters blame President Joe Biden for the recent inflation spike. This should come as no surprise as Biden has only reversed Trump era, economy boosting, measures. Since taking office, he has made it is mission to undo everything Trump had achieved, at great cost to the economy.
According to the study, 59% of voters blame Biden’s fiscal plans for the spike in inflation in the United States, opposed to 53% who blame Americans’ reversion to pre-pandemic practices.
— Morning Consult (@MorningConsult) July 28, 2021
Thirty-nine percent of registered voters, including 82 percent of conservatives and 41 percent of liberals, believe Biden’s initiatives are to blame for the rise in prices.
As per Morning Consult research, the number of U.S. adults who anticipate costs to rise in the vacation and holiday area increased to 54 percent in June from 36 percent in January.
On July 16, Biden dismissed hyperinflation as not a danger, claiming that no one has shown that unbridled inflation is imminent. Nobody is a serious economist.
Even Some Democrats Agree – Things are Looking Bad
Larry Summers, previous Secretary of the Treasury under Bill Clinton and executive director of Economic Council during Obama’s term, cautioned that the Biden governments actions could lead to inflation.
Labor market tightening, housing market activity, and asset prices are all rising in a more alarming way than he was concerned about a few months earlier.
This makes him more concerned about an overheating scenario. Summers noted that while there are many unknowns, the current emphasis of concern should be on overheating.
Labor market tightness, behavior of housing markets & asset prices all rising in a more concerning way than I worried @ a few months ago. This raises my degree of concern @ overheating scenario. There are huge uncertainties but the focus of concern now should be on overheating. https://t.co/gIV3jHDBGv
— Lawrence H. Summers (@LHSummers) July 14, 2021
The Federal Reserve Says We Have Nothing to Fear
The Fed stated that the market is progressing toward the Fed’s unemployment and inflation targets, signaling a tiny move back from its low-interest-rate policy.
The Federal Reserve noted in a statement released following its most recent policy meeting that continued immunizations were beneficial to the economy.
However, it removed a sentence from its earlier meeting that stated the immunizations helped to curb the development of COVID-19. That was the only mention of the delta version, which has resulted in an increase in COVID cases in a number of hotspots across the United States and other nations.
High national debt, low interest rates and rising inflation, the perfect dilemma.
— Hépíng (@usnigg) August 1, 2021
The central bank announced that it will retain its target short-term rate of practically 0, as it has been since the virus ravaged the country in March 2020.
Each month, the Fed buys $120 billion in Treasury and mortgage securities. The goal is lowering interest rates on longer-term consumer and commercial loans to encourage more spending and borrowing.
The Fed’s most recent memorandum arrives as the economy continues to rebound strongly from the global recession, with robust hiring and expenditure.
It does, however, correspond with unacceptably high inflation and fears about the delta variant’s spreading.