The August inflation rate came in hotter than expected at 8.3%.
Biden is planning to celebrate the one-month anniversary of the “Inflation Reduction Act” at the White House.
“Exactly four weeks ago, I signed the Inflation Reduction Act into law.”
“So today, we’re celebrating.”
US markets are down over 900 points, following the news:
From the Epoch Times:
Stocks dove following the release of the red-hot inflation data. The Dow Jones Industrial Average, for example, lost 869 points, or 2.7 percent, to 31,512, as of 11:35 a.m. Eastern Standard Time. The Nasdaq composite dropped 542 points, or 4.3 percent, to 12,198 points. The benchmark S&P 500 Index fell 127 points, or 3.1 percent, to 3,984.
Republicans blamed President Joe Biden’s policies for the blistering pace of inflation, which has eclipsed Americans’ wage gains and eroded their purchasing power.
“Today inflation came in hotter than expected, it is a tax on ALL Americans, and it has skyrocketed because of Joe Biden’s out-of-control spending,” Rep. Elise Stefanik (R-N.Y.) wrote in a post on Twitter.
Growth in food prices was particularly notable in the inflation report. Food costs shot up 11.4 percent year over year, which is the fastest pace of inflation in this category in 43 years.
Fed to Remain on Hawkish Track
Hamrick joined other analysts in [predicting] that the forecast-beating inflation numbers mean the Fed has more work to do quell price pressures and will likely stay hawkish for longer.
“The Federal Reserve looks at the August CPI and likely remains on track for another large rate hike at the upcoming September meeting. An added consideration is the next rate hike may well not yet be the last, taking the benchmark rate farther into restrictive territory,” Hamrick said.
Joe Biden continues to insist that we are not in a recession and that the American economy is strong.
Following the news, he urged the public to be patient, saying that it will take “more time” and that the slight drop from July’s inflation (8.5%) demonstrated “more progress in bringing global inflation down in the U.S. economy,” according to MarketWatch.
Ahead of the celebration, Biden said in a statement Tuesday that the August data for consumer prices “show more progress in bringing global inflation down in the U.S. economy. Overall, prices have been essentially flat in our country these last two months: that is welcome news for American families, with more work still to do.”
He said it “will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy.”
