Higher interest rates come as most voters blame Biden for ‘astonishing’ inflation

[ad_1]

Here they are. Higher interest rates. Record inflation in November forced the Federal Reserve’s hand.

U.S. households have been hit hard by continued spikes in the cost of living, and voters say the money stops at the president’s office.

Fox Business poll shows most voters think Biden is making inflation worse. Two-thirds say inflation has caused them financial hardship.

The producer price index – a key indicator of inflation – is approaching double digits. “The producer price index of 9.6% is incredible,” says economist Dan Celia. “And the vast majority are not temporary. It’s here to stay.”

Consumer price inflation is currently at its highest level in 39 years, increasing by almost 7% in the past year.

Food prices rose 6.4 percent. Gas prices rose 58%.

Federal Reserve Chairman Jerome Powell on Wednesday said the Fed is on a course that would likely push interest rates up in the first half of next year. Powell blamed the inflation on COVID.

“While the drivers of the rise in inflation have mainly been linked to the upheavals caused by the pandemic, the price increases have now spread to a wider range of goods and services,” said Powell.

But Celia says the cause is much simpler.

“We’ve had money too cheap, too fast, too long, and it continues to devalue the dollar,” Celia explained.

Polls also show that a majority of voters believe Biden’s proposed social spending plan, known as Build Back Better, would push inflation even higher and hurt the economy.

READ ‘Build Back’ Bill Adds 87,000 IRS Agents, Cuts Money For Red State Hospitals: ‘It’s Petty’

The White House had hoped to pass the $ 2 trillion package by Christmas, but now it looks like it will be postponed until next year. One of the main reasons is opposition from Democratic Senators Joe Manchin and Kyrsten Sinema, who believe the big spending bill will further damage the economy by causing even more inflation.

Biden and Manchin had a heated meeting at the White House on Wednesday.

Senator Mike Braun (R-IN) told CBN News: “It’s about how much of a barrier their own party ends up being in (the social spending bill). And thank goodness we have a few Democrats left because if it weren’t for Manchin and Sinema, it would already be a deal. ”

Celia believes inflation is going even higher than November’s 9.6 percent on the Producer Price Index.

“I guess at the end of December we will get that number in January, it will probably be double digits,” Celia said.

Most Federal Reserve officials plan to raise short-term interest rates by a quarter of a point at least three times next year to help curb inflation.

[ad_2]