Yet these efforts have done little to curb inflation, which has been moving at its fastest pace for 40 years, as a result of broken supply chains that have led to shortages of goods; Russia’s war in Ukraine, which raises energy prices; and rampant consumer demand.
Treasury Secretary Janet L. Yellen told a Senate committee Tuesday that she remains concerned about rising prices in the United States and that despite some forecasts that inflation has peaked, it is unclear when prices will fall. She cited the trajectory of the pandemic, the blockade in China and the changing patterns of consumption in the United States as important variables.
“The outlook for inflation is still quite uncertain,” Ms Yellen said.
Although the president’s ability to deal with inflation is limited – the main tools to combat rising prices are at the expense of the Federal Reserve – spending has become a topic of conversation for Republicans and political responsibility for Mr. Biden, whose ratings approval dropped.
Republicans have sought to blame the Biden administration and Democrats for inflation, seeing it as a winning issue ahead of midterm elections. Republicans cited a $ 1.9 trillion pandemic relief bill passed by Congress last year that expanded incentive payments and unemployment benefits while pumping billions of dollars into states and cities as the economy recovers.
“Biden may be living in an alternate reality, but voters are not, so they are blaming only Biden and the Democrats for the rising prices they see for everyday goods, gas and food,” Ms McDaniel said. “The economy is on the ballot in November, and voters know that Biden and the Democrats are only making things worse.
The Biden administration blamed external factors for inflation, such as the pandemic, supply disruptions and the aftermath of the war in Ukraine, and said Republicans were to blame for the stimulus money approved during the Trump administration. The Biden administration also accused the companies of making things worse by raising prices to cover their profits.
For months, Mr. Biden has claimed credit for reducing the federal deficit and encouraging tax increases on corporations and the rich, saying they have not paid their fair share. He also accused energy companies of profiting without increasing production.
Alan Rapeport contributed to the reports.
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