President Joe Biden has repeatedly touted that the pace of inflation is slowly trending in the right direction, but experts cast doubt on that claim.
dailycaller.com
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The reason for this persistently high inflation is excessive government spending, paid for by deficits, financed through expansion of the money supply,” Antoni told the DCNF. “Instead of cutting interest rates and reducing the runoff of the balance sheet, the Fed should allow interest rates to seek their own level and reduce the balance sheet even faster. As long as the Fed and Treasury work hand in glove to pay for trillions of dollars in government spending through the hidden tax of inflation, the pain will not stop.”
The national debt has increased by around $6.7 trillion since Biden first took office in January 2021, from around $27.8 trillion to $34.5 trillion,
according to the Treasury Department. The Biden administration has
pursued a number of high-spending policies that have added to the deficit, including the American Rescue Plan and the Inflation Reduction Act, which authorized $1.9 trillion and $750 billion in new spending, respectively.
The failure to reduce inflation back to its 2% target has wreaked havoc on the value of wages, which struggle to keep up when inflation progresses too quickly.
April’s inflation report showed a
decline of 0.4% in real wages for the month, equating to a 4.8% decline in weekly earnings since the president took office. The decline in wages is due to a reduction in hours as employers adjust to slack in business or increase the share of part-time positions as increases in pay fail to keep up with inflation.
The president has consistently
claimed that recent inflation is being fueled by “corporate greed” and markups by companies taking advantage of American consumers. The Federal Reserve Bank of San Francisco disproved this claim by pointing out that corporate markups following the COVID-19 pandemic were largely similar to other economic recoveries when there was not a similar spike in inflation."